The Top 7 Strategies to Revitalize Your Franchise
Below is a list of some of the most important things you need to do to revitalize your franchise.
1. Redefine Your Goals and Vision
As a franchisor, you have likely achieved many goals and overcome many hurdles. With all that hard work you may have stopped focusing on the future. Setting new goals for growth and clarifying your long-term strategy can reinvigorate momentum for you and your franchisees. Working together to achieve these new goals will be rewarding to all those involved.
2. Survey Your Existing Franchisees
It is imperative to get frequent and regular feedback from your existing franchisees to find out what is working well and what is not. Using a third party encourages franchisees to be more open with feedback to measure your effectiveness as a franchisor, identify opportunities for improvement, and let franchisees know you care. Addressing problem areas quickly translates into better validation, less potential for legal issues, and happier franchisees overall.
3. Review Your FDD and Operating Manuals
It is important to conduct a comprehensive review of these documents every year, not only to adapt to changes in the law, but also to improve the marketability and consistency of your franchise package. This is the time to incorporate any strategy changes, update Item 7 information, and ensure consistency between the FDD and franchise manuals. These document updates are legal requirements; however, they are also the marketing tools you need to sell more franchises.
4. Complete a Business Performance Review
To continue to improve your business you need to review the key functional areas of your business to ensure they are staged for growth. Evaluating whether you have the right systems and right people in place for each function is critical, from finance and purchasing to marketing and IT support. What worked well when your franchise was smaller may not be sustainable or appropriate for your future growth.
5. Evaluate Your Marketing Program
As a franchisor you need to have a marketing strategy and message that communicates both to your end consumer as well as potential franchisees, and gives you the competitive edge you need in today’s market. Ensuring that you are using the best approaches to attract the right candidates can save you time and money. Evaluating your current marketing effectiveness in terms of lead sources, cost per lead, cost per awarded franchise, value of broker leads, website performance, and other metrics will show you where to focus your resources in the future.
6. Assess Your Current Sales Process
There are many considerations in the franchise sales process, which can change over time as your business grows. Some key decisions include whether to use brokers or not, whether master franchising is right for your business, whether to use external professionals or inside sales personnel, and what process to use in order to both maximize the number of franchises awarded and find the best potential candidates for your franchise. To be most effective, you need experienced sales professionals using a proven sales process that is tracked in an easy-to-use database management system.
7. Develop a Winning Discovery Day
Most franchisors do not have a detailed Discovery Day plan, leading to experiences that are not optimal for either the franchisor or the potential franchisee. Every activity at Discovery Day must be carefully planned and rehearsed to ensure that the prospect gets the best impression of your franchise, and feels welcome and important. You are selling your concept, your operation, your professionalism, and your culture to someone who will be a long-term business partner. Discovery Day is critical, as it sets the tone for your relationship with your franchisee.