3 Keys to Franchise Success and Profitability
3 Keys to Franchise Success and Profitability

3 Keys to Franchise Success and Profitability

All franchisors, regardless of industry, have one thing in common: the need to drive profitability throughout their business entities.

That requires managing a distributed workforce with multiple locations while monitoring efficiency and compliance across franchisees with different systems of organization and leadership.

There are three keys to tightening up your business processes to make your franchise more streamlined, efficient and, of course, profitable:

1. Control what you can control.

With so many volatile factors affecting your business each day, such as the economy and government regulation, successful franchisors control whatever is in their power to control.

For example, use payroll and timekeeping systems that allow you to track labor costs and determine real resource needs. Do you need as many people behind the counter as you’ve scheduled? Little errors can add up over time to major losses. The first step to fixing such problems is identifying them.

2. Commit to checklists.

Once you’ve assessed your gaps and found solutions, stay on track by using checklists. Lists make sure nothing falls through the cracks, whether it’s stock level, cash control or job duties.

To augment your checklists, use a web-based reporting tool to collect and analyze data—keeping information from franchisees consistent and centralized so you know you have real information on which to base decisions.

Broad-based reporting will allow you to detect anomalies or site-specific needs across your business units. Seeing those nuances takes the guesswork out of decision-making, which boosts your credibility when you communicate changes to policy or practice with your franchisees. When they know your decisions are founded in accurate numbers and good data, the trust factor goes up—and so do the acceptance and adoption of your plan.

3. Be flexible and be prepared for change.

Trust is critical, because change is inevitable—no matter how strong your systems and processes are. The key is for those systems and processes to also be nimble and scalable so your business efficiency never suffers, even due to circumstances outside your control. If you run your business consistently internally, the external should have minimal effect.

Training plays a pivotal role here, from franchisors to franchisees and from franchisees to frontline managers. From the top down, the importance of consistent systems must be stressed, to ensure a uniform brand experience for customers and to maintain a standard of efficiency across the board.

Using a web-based HR information system, or HRIS, streamlines corporate processes and enables training and communication throughout the business. Franchisors and store owners can monitor training and certification for franchisees and new hires, in addition to managing a consistent performance evaluation process across all entities.

Are you maximizing your profitability by employing best practices throughout your franchise business? For more tips on increasing efficiency, download this free whitepaper. Then view this 2-minute demo to see how Paycor’s Perform platform offers everything you need—from payroll and time to HR and custom reporting—to stay in control of your business and your brand.


Source: QSR Magazine

More to Discover

Webinar: The Turnover Crisis in Restaurants: An Action Plan for Owners and Operators

Webinar: The Turnover Crisis in Restaurants: An Action Plan for Owners and Operators

Restaurants across the country are experiencing high volumes of turnover at an alarming rate. In 2016, turnover exceeded 70% for the second consecutive year, and the turnover rate in the fast-food industry reached 150%, the highest since data was first captured in 1995*. With record numbers of restaurants and more jobs to choose from, employees are willing to take risks to find the right fit. Join our webinar to understand how to manage and prepare for turnover before it happens so that you can reduce the impact on your bottom line. Plus, we'll share how restaurants are using technology to solve their HR challenges. Speaker: Henry Link Henry is a Principal Marketing Program Manager at Paycor. Through his extensive research in the HR...

Webinar: BUILD Web Summit - Build a Competitive Compensation Plan

Webinar: BUILD Web Summit - Build a Competitive Compensation Plan

Learn how to build a compensation plan that keeps you in line with the market and maintains compliance. Speaker: Christine Ippolito Christine Ippolito, SPHR, SHRM-SCP is the Founder and Principal of Compass Workforce Solutions, LLC, a consulting firm providing strategic human resource expertise to small businesses to reduce exposure and increase profitability. She has served clients in a leadership capacity for 25 years in multiple industries and environments within Fortune 250, venture capital and equity-backed companies, as well as privately held and family-owned businesses.

Automated Payroll, Onboarding and Timekeeping Helped Royal Chemical

Automated Payroll, Onboarding and Timekeeping Helped Royal Chemical

Discover how Royal Chemical, a contract manufacturer, used Paycor solutions and customer service to eliminate manual onboarding, timekeeping and payroll. Paycor also provided real-time analytics and custom reporting, simplifying a once complex process for HR.

The Turnover Crisis in Manufacturing

The Turnover Crisis in Manufacturing

An action plan for all HR and finance leaders It’s no secret—manufacturing is losing talent. As Baby Boomers leave the workforce and take valuable skills with them, it’s expected that nearly 3.5 million manufacturing jobs will open up by 2025. Two million of those jobs are expected to go unfilled because of the skills gap*. The longer positions go unfilled, the more the production process is disrupted. Company morale starts to decline, and manufacturers see profits dip as they’re unable to operate at full capacity. Automation and robotics may help fill some of the labor gap, but HR still needs to find humans to problem solve, analyze issues and manage output. If you’re trying to recruit in the manufacturing industry, you’re in a vicious...