While franchisors need to maintain brand consistency and quality standards across their networks, franchisees face increasing pressure to protect their profit margins in an inflationary environment. The most successful franchise systems recognize that supply chain management must balance the needs of consistently meeting brand standards with the economic realities facing franchisees.
A detailed guide to developing your franchise system’s Strategic Plan, including utilizing a team approach to get all the elements to fit together.
An interesting phenomenon of a general downturn in the economy has often been the growth in franchise systems that occurs while the rest of the economy is going south.
Be aware – not afraid of change. Respond to your customers’ changing needs. Give them what they want – not what you want to give them.
Take a step back from the immediate issues your franchise system is facing today and look closely at the reasons underlying your problems – not just the symptoms.
Franchising will continue to be a successful strategy for those small businesses and individuals, but there has been a shift in the traditional economic paradigm.
Formulating a detailed business plan exposes assumptions to detailed formal scrutiny, and can ensure that weak points are identified early enough to make positive changes.
Franchising is generally countercyclical to the economy; as job losses increase and people feel their security is threatened, they turn to entrepreneurial thoughts.
How the Strategic Plan is generated, and how management communication and decision making are structured, are often significant parts of the problem.
MSA Worldwide Franchising Resources & Library
