3 Biggest Challenges Facing Franchises

3 Biggest Challenges Facing Franchises

I can’t keep track of my franchisees customer data

Your franchisees customer information is critical information which underpins the value of your business. Franchising by nature is a de-centralised model, which means if each franchisee is maintaining customer information, your reliant on them to maintain and send you the information.. This creates overhead in:

  1. Franchisees Manually maintaining spreadsheets
  2. Getting up to date data from franchisees who are slow in sending the information
  3. Cost of someone at head office maintaining chasing up franchisees to send their customer updates and then the hassle of updating your head office database

I can’t keep track of my franchisees performance

If you don’t know the key performance indicators (KPIs) of your business then you don’t know if your Franchise is succeeding or failing. It’s like flying a plane without instruments. Similarly if you do know your kpi’s but your not receiving that information on a timely basis, then your operating on stale information

I want to see my financial results of my franchisees on a timely basis

Franchisors normally recommend using one of the standard small business accounting programs like MYOB or Quicken. The problem with these type of packages is that:

  • Information is often not kept up to date by the franchisee, hence monthly accounts are impossible to get
  • Accounting mistakes are made the franchisees which are not picked up until after year end
  • Information resides on the Franchises computer, requiring them to send the franchisors data files, which adds to the complexity of synchronising the most up to date data
  • Information is not consistent as chart of accounts are changed
  • There is an overhead by the franchisor consolidating this information on spreadsheet. The greater number of franchises the greater the overhead