Solution – Brands With 10+ Franchisees – Let’s Fix Your Problems

Solution – Brands With 10+ Franchisees – Let’s Fix Your Problems

Sparkleminds provides an in-depth solution to manage growth for franchisors who are growing at a blazing pace. There are many who have outgrown what they can actually manage and are already facing issues flaring up from franchises every now and then. Mature franchisors and brands that have acquired franchises at a certain pace may be facing several difficulties. There could be certain challenges or there may be a pressing need to restructure the franchise model as it is throwing up several glitches. The key is how to manage business growth in business.

There may be an urgent need to improve the productivity of every franchise. At times there are several underperforming franchises that could do a ‘U-turn with systematic engagement. So, there may be a need to add a fresher set of franchises that could instill vigor and energy into the system. There are several tools deployed to improve the efficiency of a franchise system.  We could work with a few of your underperforming franchises or work on improving the entire network. We could also help you refine your franchise model, agreements, manuals, training programs, and everything that is needed to manage a growing franchise system, rather efficiently.

Whatever is the requirement this section deals in detail with the following:

Why is there friction between franchisors and franchisees?

We’ve seen a constant source of tension between mature franchisors and their existing franchisees. Here are a few reasons for the same:

  • Periodic need to modify the network’s concepts and systems to keep up with (or ahead of) the competition,
  • Need to incorporate new technologies,
  • Important responses to changing consumer demographics, ethnicities, preferences, and trends
  • Introduction of new products or services and delete older products and services from the system
  • Changes in the existing trademarks/service marks/designs, or a decision to abandon them altogether in favor of new trademarks/service marks/designs.
  • The decision to modify the exterior and interior design of the network’s units and the equipment utilized
  • Designing new advertising platforms and campaigns;
  • Re-aligning the franchise approval process and sources from where franchise leads are generated.
  • Summons for franchisees to undergo additional training regarding the integration of new technologies
  • The pressure to keep the mature franchise network’s image, products and/or services fresh, competitive and responsive.

What is the solution to manage growth?

A very popular example of the above is McDonald’s. About three decades ago the franchisees were informed about the inclusion of breakfast in their menu. The immediate reaction was that of hostility. Adding breakfast to the menu meant starting before dawn, adding an extra shift, learning how to prepare new dishes, and investing money in adding or renovating units. However, the breakfast menu at McDonald’s soon turned out to be one of the most profitable menus for all the parties concerned.

Hence as a franchisor, you know what could work best for the system and there is a way to bring about change. Bringing change is always difficult and hence finding the best solution for franchisors could possibly not be an easy fix.

Implementing Change as a Solution?

McDonald’s franchisees were not the only ones facing significant concept and system changes. Pizza Hut franchisees had to start delivery when Dominos’ success started threatening Pizza Hut’s market share. Several commonly controlled franchise networks such as Dunkin’ Donuts and Baskin Robbins had to learn how to co-brand each other’s products to increase both chains’ menu offerings. Another recent change that the McDonald’s franchisees went through is the implementation of the new “Mc Cafe” concept.

A mature franchisor requires a certain ability and expertise for such system and conceptual changes to take effect. Franchise agreement terms addressing this subject are critical and at Sparkleminds we suggest and include the right clauses for you. Even though the franchise agreement clearly states the franchisor’s rights to initiate system-wide changes, there have been cases where franchisees have filed cases against them in order to oppose these changes.

How you could make more revenue from each of your franchisees?

Hence a periodic franchise health check-up is critical. We perform a thorough test to diagnose all parameters that would affect the functioning of your franchise system. In addition, we will also provide the exact solution that would help you make the most of your franchise network. You will be thrilled of the results you get within 12-24 months of our engagement. We have seen more than 90% of franchises within the system start showing better results within this period.

So, call us today and whatever is your requirement, we will be able to assist and help you get the most out of your franchising,