With the number of franchise establishments in the United States expected to increase, there is continued focus on profitability in the franchise sector.
Managing profitability such as coordinating initiatives to collect and analyze financial statements, automate royalty collection, improve performance with KPIs, and gain visibility with franchising accounting can become complex and cumbersome. However there are business partners who offer simplified tools and techniques, and adopt common frameworks to easily replicate your system.
Starting your data collection initiative can be overwhelming the first time. Choosing a partner who understands franchise complexities and rules will help remove the guesswork allowing you more time to focus on your core competencies. When selecting a franchise profitability partner, consider the following:
1 Specializes In Managing Franchise Systems
There are plenty of financial management tools and resources. Make sure to choose a partner who specializes in franchising. The rules and intricacies are different from traditional business models.
2 Has an established operating model for managing franchises
Make sure your partner has a proven operating model, and can demonstrate the services, preferably with a franchise who is similar in size and capacity.
3 Understands and provides expertise in getting a franchise off the ground, or who has knowledge and experience with large, established franchises.
Whether you are an entrepreneur franchising your business, or an established, nationally-known franchise, make sure your business partner is competent in your situation, and has data to back it.
4 Provides 24/7 excellent support
Check the number of employees, hours of operation, and capacity to support your needs or your expected needs. Is your partner robust enough to handle your growing operation?
5 Has a proven track record from successful franchises
Get references. Request financials. Ensure stability. Talk to clients to verify their satisfaction rating before partnering. A great predictor of future success is past successes. Do they have plenty of successful experiences, and are they willing to share those experiences?