Franchisors have an opportunity unlike other retail outlets. As a collection of similar enterprises that experience varying levels of success, they can look to their high performers to determine what works and what doesn't. Instead of wasting time looking at other industry brands to develop plans for improvement, franchisors can use their thriving franchisees as models for those not meeting the mark. This process of benchmarking is made even easier with specialized software that allows for effective standard-setting, planning and monitoring.
Most franchisors will know who are their underperformers. With the right franchising software, you can identify in what areas they are lagging behind. At the same time, you can find out who's excelling in your system in those particular areas. From there, it's a simple matter of supporting each franchisee to meet the standard set by the leaders in your chain.
Create Best Practices
Once you know who's doing it right, use them as an operations model for all franchisees, especially those who are struggling to find success. Best practices ensure some uniformity across the chain based on standards that have already proved revenue-generating for the business. They also provide clear goals for the underperformers to meet.
Steps for Improvement
In order to support underperformers to reach those goals, offer them steps for improvement based on best practices and data from the benchmarking software. Management teams can provide encouragement by presenting this idea to franchisees as a form of support to help them reach the success standard of the high-performing locations.
Benchmarking software can also provide management with an effective tool to track the progress of struggling franchises after they have begun to implement best practices. The data gives ample opportunity for managers to step in and provide further guidance if needed or requested to ensure successful franchising.
In addition to its use as a tool to help franchisees meet higher standards of success, benchmarking and accounting software allows for real-time monitoring of all of a business's locations. With easy access to specific, relevant data, management teams save time gathering knowledge about the chain and implement efficient resource allocation across the system.