4 Systems for Multi-Unit Franchisee SuccessJan 24, 2023
The secret to multi-unit franchisee success lies behind the systems that allow them to delegate operations with confidence and focus on leadership, strategy, and growth.
- There are four systems that these franchisees implement in their organizations to do exactly this. The best part is you can learn these strategies to be just like them!
First, let’s define what is a system. This refers to a set of processes and procedures that, when implemented well, produce a predictable and consistent result.
This is why franchising is so effective! In this business model, the founder of a proven brand created systems around a well-positioned and desirable product or a service so that you, as a franchisee, could duplicate those processes and procedures with a high level of excellence, and then obtain the expected predictable results in your own business.
Success systems defined by the franchisor
There are three types of brand systems the franchisor shares with their network:
- The systems around the product that they are selling within the brand
- The systems of the service processes
- The systems of the brand’s image
Aside from developing these, the franchisor also had to go through a process to be able to delegate operations. This implied documenting all of the brand’s systems, processes, procedures as well as the policies of their organization.
With this written, they train their teams, franchisees, and the unit’s staff to transmit that knowledge practically. And, once the franchise units are open, they have to do a follow-up to make sure that those systems, processes, and procedures continue to be executed properly.
Success systems defined by the franchisee
More is needed to be successful. Just as the founder developed those to have a franchise business, you need to have the management systems in your organization so you can operate a healthy business and delegate operations to your leaders, managers, and your team.
That's what we call the TIPS system, an acronym for Team, Income, Profit, and Scale. Let’s go over what those systems are, one by one.
- By the way: this is what successful franchisees have created as their business and management baselines and what allows them to efficiently delegate operations and fulfill their financial and time freedom!
1. The Team System
This system involves the actions related to hiring, retaining, and inspiring the team members. In itself, it requires a lot of processes, procedures, information, and knowledge so that your leaders can select the best people for your organization, just as you would do it.
An example of one of these procedures is interviewing people, which is part of the hiring process. You need to clearly define, document, and train your leaders on how to do an effective interview so you can then delegate this task and just follow up on its proper execution.
2. The Income System
This set of processes and procedures will allow you to ensure you increase revenue year over year. It is true that when you are part of a franchise organization, the franchisor will do marketing and promotion to help you increase your sales.
- But top-performing franchisees don't just depend on the franchisor to bring them revenue. Successful multi-unit franchisees own their sales!
And, because the processes and procedures are in place in their organization, they can have incremental revenue, which is the oxygen of the business.
3. The Profit System
Franchisees must develop this to ensure they are minimizing waste and achieving the financial goals of the business.
Remember: you didn't open a business to sell pizzas, give massages, or teach children. You may enjoy that, but the reality is that you became an entrepreneur and invested in a franchise to have a profit.
If you want to make the most of your investment, this system is crucial. It is also imperative that your managers, leaders, and district managers execute the income processes and procedures properly so your units can make the most profit they can.
4. The Scale System
As I have explained in previous blog posts, operating one unit is equal to having a job. Having multiple units, on the other hand, makes an enterprise.
- If you want to achieve time and financial freedom, you must have multi-units!
That’s why you need to have systems in place to scale your organization and open unit after unit successfully so you can achieve the time and financial freedom you want.
And, more importantly, train your people in these standards so each opening is consistent, end-to-end.
Those are the four systems that successful multi-unit franchisees implement to have top-performing organizations, day in and day out.
Not only do you have to define them, but clearly document and train your leaders and teams on them so you can truly delegate your operations. And then, either you or your district manager have to do a follow-up on them.
I’m not gonna lie. This requires a lot of work, but it is all knowable! Anybody can do it it’s a matter of having access to the right information, the right support, and the right mentorship to make it happen.
And the quicker you can do all these things, the faster you'll be able to scale your organization and achieve the time and financial freedom you want!
If you want to learn more about these systems include and how to develop each for your organization, we have a program to help you!
Our COMMAND Program teaches and accompanies franchisees so they can define all of the systems and processes they need to become top-performing franchisees.
- Join us in our next information session to learn all about our program. Go to www.MultiUnitSuccess.com and register for free.
I hope that this was useful to you. Stay tuned for more information, don’t miss our social media (Facebook, Instagram, LinkedIn), and subscribe to our YouTube Channel to get more tools, business tips, and resources to help you be a successful business owner.
- How many of the TIPS Systems do you have in place, documented, and ready to transmit to others?
- Are your leaders properly trained so you can delegate operations to them?
- What business systems you are lacking to be successful with your franchise?
- Are you doing a proper follow-up on the execution of the business and brand systems?
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