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Growing and Managing a Franchise Network Print

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Scale.

WHAT CHANGES AS THE NETWORK GROWS

Support demand increases Consistency becomes harder Communication becomes formal Problems affect more parties

WHAT TO ESTABLISH BEFORE GROWING

Support capacity for the number you intend to have.

WHY

Recruiting faster than you can support is the classic franchising failure.

WHAT TO BUILD

A support team Monitoring systems Training capability that scales Communication across the network

WHAT TO ESTABLISH ABOUT RECRUITMENT PACE

A rate you can genuinely support.

WHAT TO RESIST

Accepting franchisees because they approached you.

WHY

Selection matters more than volume.

WHAT TO PLAN

Geographic development deliberately.

WHY

Scattered outlets are expensive to support and they build no local presence.

WHAT TO CONSIDER

Developing an area properly before opening elsewhere.

WHAT TO ESTABLISH

How the system improves over time.

WHY

A system that never develops loses relevance and franchisees notice.

WHAT TO INVOLVE FRANCHISEES IN

Improvements and testing.

WHY

They are operating the business daily and their ideas are frequently better.

WHAT TO ESTABLISH

A forum for network input.

WHAT TO MEASURE

Franchisee profitability Compliance Retention and renewal rates Failures and their causes

WHY RETENTION SPECIFICALLY

It is the truest measure of whether the arrangement works for both parties.

WHAT TO PROTECT

Franchisee profitability.

WHY

It is the foundation of everything else.


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