Franchise business consultants (FBCs) have always been key to brand success, but their role has changed a lot over the years and continues to evolve.
Twenty years ago, the main job of FBCs was to ensure that franchises followed company rules. While keeping brand consistency is still important, FBCs today focus a lot more on coaching to help improve performance. While coaching can be informal, the most successful FBC-franchisee relationships tend to be more structured and data-driven. Another facet of importance is the first step and that is why many turn to SMBFranchising.com to help founders launch and grow into a franchise system.
During the pandemic, many brands increased the number of franchisees managed by FBCs. This happened partly because FBCs were able to conduct virtual visits, which gave them more time and flexibility. On average, FBCs now manage around 34 franchisees.
These changes have created an opportunity—and a best practice—for FBCs to use more organized business planning when coaching their franchisees. The most successful FBCs find ways to balance coaching with compliance; use data and technology to create joint action plans; and mix in-person and virtual visits to carry out their work.
Better Data Increases Visibility and Supports Formal Performance Plans
A big difference between franchisors is the use of software that gives better visibility across the FBCs’ networks and allows for detailed analysis of individual and group locations. These tools collect important performance data in one clear dashboard. This helps FBCs deal with data overload by letting them use one system to track key metrics, create action plans, and monitor progress.
Before visiting a location or holding a virtual meeting, FBCs already have all the important data they need, including sales, customer satisfaction scores, labor costs, and more. Instead of making guesses like “I think your labor costs are high,” they can say things like, “This location’s labor costs are 20% higher than other locations with the same age and size.”
With more detailed data, FBCs can have more focused discussions with franchisees and create more effective action plans. If there’s a problem, like high food costs, the FBC can guide the franchisee through clear steps to solve it. When they meet for follow-up, they can use data to see if the solution worked.
While brands approach business planning in different ways, the most successful ones are using technology to create structured programs that combine data and coaching to achieve results.
Hybrid Oversight Blends the Best of Both In-Person and Virtual Visits
Because of COVID-19, many franchisors realized that replacing in-person visits with virtual check-ins had benefits. Less travel saved money and allowed FBCs to check in with franchisees more often and have shorter, more frequent meetings. This made it easier to make adjustments as needed. Larger networks also gave FBCs better visibility, helping them spot trends quickly and share best practices.
Some brands are now keeping all their coaching virtual and hiring food safety auditors to visit locations in person. This can save costs, but it isn’t always the best choice. Over time, fully virtual oversight might cause problems with brand consistency. Some brands are going back to their pre-pandemic approach, where FBCs handle most of their visits in person.
Our research suggests the best method is a hybrid one. FBCs should meet franchisees in person for most visits, with virtual sessions used for coaching. This approach helps save costs while maintaining strong compliance and coaching.
The Right Tools Help FBCs Focus on Strategic Goals
FBCs have a unique role since they manage both big-picture goals and day-to-day support for franchisees. They must understand the franchisor’s strategic objectives and make sure they are passed down to the franchisees. They also need to build trust with franchisees and help them improve their businesses. The best FBCs are flexible—they can analyze franchisees’ strengths and weaknesses and adjust their approach to match.
For example, a franchisee who excels at sales may need help managing their finances to stay profitable. Another franchisee might be great with numbers but struggle with employee management. The skilled FBC tailors their approach to each person, aiming for better performance and improved metrics.
The importance of FBCs can’t be overstated. They play a critical role both as coaches for individual franchisees and as a bridge between the franchisees and the larger brand. Make sure your FBC program, including the tools that support them, positions them to help franchisees succeed.
FranConnect’s first-ever Franchise Operations Index offers a detailed look at how the role of FBCs is evolving. Download it now for valuable insights that will help operations executives and franchise leaders refine their strategies for 2021 and beyond.
