Franchisor Monitor and Support the Operations of a Franchisee | ALLPOS


How can an F&B Franchisor Monitor and control Support the Operations of a Franchisee?

Posted On October 21, 2021

How can an F&B Franchisor Monitor and control Support the Operations of a Franchisee?

Franchising is a fantastic way for a business to grow! Opening many F&B outlets help establish a sort of hold in the market and allows the brand to compete with top competitors. No doubt franchising is great for profitability too and increasing the value of the business as a whole. Should you want to sell your business, it will be worth a great deal more. With so many franchisees, how do franchisors retain a sense of control grip in the business when monitoring and controlling the operations of their franchises? It can seem like a daunting task!

A franchisee must be performing well. Their performance is linked to the brand’s name, image, and reputation. Ensuring a steady flow of income generated from the franchisee is imperative too. Income is a way of giving a franchisor insight into the franchisee. It is as simple as this; if the business is doing well, it will reflect in the income, and if it’s not, it will also reflect accordingly.  There is a franchise fee paid monthly to the franchisor based on the gross sales. It gives the franchisor a fair idea of how the franchisee’s business is performing.

As it is with any business, finances must be monitored and managed closely. It ensures the growth and survival of the franchise. Financial data is analyzed, and the franchisor can draw conclusions and know how to take progressive action consequently. If even one business is not performing as per standards, it can dent the brand value and be detrimental to the value of the business.

A common and consistent accounting and bookkeeping format will do wonders in making the overseeing of the finances easier! All the financial data will be in a standard system that makes it easy to manage as a whole.

Aside from income, franchisors can view the franchisee’s performance in general. Franchise dashboards combine all the necessary data and give a real-time view of how things are managed. Franchisors view all their units and assess what the strengths and weaknesses are, and identify trends.

There’s a fine line between a franchisor monitoring action and being intrusive. It’s a challenge to find the balance. How much support should be provided when needed without becoming overly involved in the business. Of course, in the beginning, when a franchisee is new, they will need to be monitored more regularly.

Another helpful way that a franchisor can monitor the franchisee is to monitor the business performance of each franchisee with Franchise Management Software (POS Software that allows Franchisers to get real-time business insights) and also by doing in-person visits to the outlets. It’ll give the franchisor a general idea of how things are operating. You can either show up unannounced or warn them in advance! Apart from site visits being only about performance, the franchisee will feel supported by the franchisor. That is a vital aspect. Franchisees must feel like they do care and are invested in the growth and success of their business. Not lending support, especially in the early stages can make the franchisee feel almost abandoned.

Franchisors can hear from external sources too to know the happening of the business. Franchisors can have any complaints or even general feedback and comment that they receive from customers sent to them. If the response is negative the franchisor will know where to step and lend their support and resources – if needed.

The task is to let the franchisees operate independently without stepping in and taking control of the entire operations, irrespective of how badly the franchisor might want to! A little support can go a long way, where the franchisees will feel that the franchisor trusts in their ability to run things and succeed.