Don’t Let Cost Control Paralyze Your Success!

 Being mindful of your expenses is a critical responsibility for a multi-unit franchisee. However, that alone cannot drive your long-term success. If you focus only on cost control, you won’t be able to move forward with strategic thinking and growth for your business.

  • Every franchise brand has a proven financial model, we call it unit economics. 

There are five things about your business and the franchise brand that you need to be aware of to truly maximize your profits, make the most of your investment, and be successful as a top-performing franchisee

 

1. Understand the Unit Economics of the brand

This is the first step for you to be a successful franchisee. Financially speaking, you need to know the limitations of the brand you invested in. That means, knowing how to maximize the average indicators based on the experience that the franchise has had in its existing years.

Some of those indicators are:

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Do you Have the Right Franchise? 5 Clues to Find Out

numbers planning profit sales Aug 23, 2022

Choosing the right franchise is a very challenging process. Some franchisees may have already started operations and still wonder if the business concept they acquire is the ideal one or not.

How can you tell if you have the right franchise for you? What can you do if you realize that the brand you chose is not your best fit? Answering these questions as quickly as possible is very important for your success as a franchise business owner. And that’s what we’ll be exploring in this blog post.

 

5 ways to detect if your franchise is the right one

First, you have to understand that every franchise is different, especially in terms of the effort and the support needed to operate. The unit economics in the business model is also different, even within the same industry.

Once you are clear on this, there are several reasons that'll make you suspect that a franchise is not perfect for you.

 

1. You have less revenue than you calculated

In most franchises, the level of...

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Are you Ready for a Recession? 4 Smart Questions and Actions to Face it

There is so much talk about recession, whether we are in it or if it’s coming shortly. But what you need to worry about as a franchisee is how to make sure you are prepared for whatever happens in the economy.

You have to be aware that there might be global, countrywide, or local events that could affect your operations. That’s why you need to think through and act to make sure that your business is as protected as possible. That’s one of your jobs as a business owner: take the time to design strategies to minimize the negative impact of outside influences.

That’s when you work on your business, not in your business. Especially if you are a growing multi-unit franchisee, dedicating time to strategic thinking is critical to protecting your business, your people, and the brand that you invested money in.

Entering into survival mode? Review these tactics to grow in 2022 and beyond

In this blog post, I want you to analyze the questions you should ask yourself....

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The 3 Roles of the Franchisee

Building a profitable and proven brand is hard! But franchising allows entrepreneurs to own their business and achieve the time and financial freedom they want and deserve. Without franchises, many people wouldn't have the opportunity to make the American dream of business ownership a reality. 

But there’s a catch. Many franchisees come from a corporate background or haven't had a job for a little or a long time. And when they finally invest in a franchise, they realize how different it is to be an employee vs. owning a business.

Why is this? When you work for a company, your role within the organization dictates what you focus on day in and day out. Someone defines your goals and monitors your impact on the overall results. And, most importantly, you're clear on what your job is and the activities you must execute every day to accomplish the business objectives.

When you are an entrepreneur, especially a franchisee, that's not the case. You don’t have that...

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When to Give a Raise to Your Employees: 4 Scenarios to Consider

When it comes to managing people, why, when, and how to give raises to their employees is one of the biggest challenges that franchise or business owners face. Why? Because given at the right time and in the right way, raises can impact the company culture positively. On the other hand, not having them can affect the working environment negatively. 

You must remember that there are two objectives when it comes to giving people this financial benefit. First, to give recognition for performance. Second, to provide fair and competitive pay according to the market, to be able to retain those employees.

Think about it! Upgrading a person’s salary when they outperform will get them excited and motivated to be in your organization and willing to continue giving you that extra effort when they come to work. Otherwise, even if you have a great culture and you do everything right, if you don’t offer the pay that the employees deserve, then they might end up leaving you.

View...

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5 Keys to Achieving the Expected Business and Financial Results

There are seven critical responsibilities that the district manager has to command to achieve the business and financial results that the franchisee business owner expects.

In past blog posts, we covered leading, planning, staffing, execution of brand and business systems, maintenance, and marketing. Last, but not least, we’ll analyze the results responsibility, which ultimately sums up why these leaders do their job every day. 

If you want to see all prior responsibilities, subscribe to our YouTube Channel to review the rest of the District Manager’s playlist!

If the district manager does what he needs to do in all the other responsibilities, he’ll be able to accomplish this one. That’s why this position has to be clear on what are the duties and routines they have to perform to achieve the desired results

That’s not all. Aside from that, they need to develop these specific five skills:

 

1. Understanding financials

The district...

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Survival Mode: Tactics to Grow in 2022 and Beyond

 

 (Part 8 of the 2022 Multi-Unit Franchising Conference)

For the last eight weeks, I’ve been reviewing what I experienced during the 2022 Multi-Unit Franchising Conference. To close up this blog series, today I’m sharing particular tactics that four successful multi-unit franchisees are implementing to grow their organizations and their portfolio. 

The best part is that you too can take these actionable to increase the revenue of your business not only in 2022 but beyond! 

Did you miss the past video sessions of the 2022 Multi-Unit Franchising Conference? Subscribe to our YouTube Channel to review the rest of the series!

 

Donna Lafreeda, Denny’s multi-unit franchisee

She operates over 80 restaurant units in multiple states. She is focused on growing her organization with this single brand, and her current goal is how much cash flow she can get out of her business. 

One of the things she looks for is to take out language that...

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2022 Disruptions in the Franchise Industry: Where Should Leaders Put Their Sights On?

(Part 7 of the 2022 Multi-Unit Franchising Conference)

What is the state of the franchise industry nowadays and what should franchise owners and franchisees be preparing for? During his lecture at the Multi-Unit Franchising Conference, which happened earlier this year, Darrell Johnson, CEO of Frandata, shared his thoughts and deep analysis on this matter. 

Frandata is the premier source of market intelligence data in the franchise world, across 230 industries and over 4,000 brands. In this blog post, I’ll be sharing the takeaways of this session, which was, as you can imagine, very informative and eye-opening. These are the things that franchise leaders need to be aware of and understand so that they can make better decisions in their present and future businesses.

Did you miss the past video sessions of the 2022 Multi-Unit Franchising Conference? Subscribe to our YouTube Channel to review the rest of the series!

 These are the things that franchise leaders need to...

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How to Build Your Infrastructure for Growth

leadership numbers people May 04, 2022

(Part 4 of the 2022 Multi-Unit Franchising Conference)

The Multi-Unit Franchising Conference is an event dedicated to multi-unit franchises, their development, and growth. Once again, The American Franchise Academy was present there to bring you strategies to succeed with your multi-unit franchise. 

2022 program included a session on how to prepare our organizations for growth, by building proper infrastructure for it. Not in terms of the leadership team or the store structure, but from the operations and financial points of view.

Did you miss the past video sessions of the 2022 Multi-Unit Franchising Conference? Subscribe to our YouTube Channel to review the rest of the series!

This topic was approached by four panelists, who highlighted the things that leaders need to implement to succeed and scale their organizations. Here are their tips to build your infrastructure for growth.

Make a serious due diligence

Fred Burgess, a MUMBO ...

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4 Qualities You Need to Become a Top-Performing Franchisee

Every franchise brand has a list of its top-performing franchisees. Sadly, this elite group represents only 1% of their total units. That means that 99% of the franchisees don’t know how to make the best out of their franchises so that they too can be so successful that they even win awards and recognition at their brand’s annual conference.

What do those top-performing franchisees have in common? What are the mysterious things they do to be so successful? Throughout my +30 years of experience in the franchise sector, working with global SMB 500 brands, master franchisees around the world, and collaborating directly with CEOs, I have identified that this 1% of franchisees have four things in common. But don’t worry, you also can work on these qualities to become part of this group.

  1. Be a multi-unit franchisee

The majority of the top-performing franchisees are multi-unit and they do the enterprise management the right way. Why is that? Because when you...

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