Solution For Big Franchisors

Solution For Big Franchisors

Sparkleminds provides in depth solution to mature franchisors and brands who have a network of franchises. There could be certain challenges or there may be a pressing need to improve the productivity of every franchisee. At times there are several under-performing franchises who could do a ‘U’ turn with systematic engagement. There may even be a need to add fresher set of franchises who could instil vigour 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 under-performing franchises or work in improving the entire network.

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

Why is there a friction between franchisors and franchises ?

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 responds to changed 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 of new advertising platforms and campaigns;
  • Summons for franchisees to undergo additional training regarding 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?

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.

Implementing Change?

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 revenues 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 effect 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.

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