Tensions between franchisees and franchisors at certain brands seem to be escalating.
Franchising can be a certain path towards hitting your restaurant growth goals. However, growing your number of locations through franchising presents a number of challenges. Maintaining brand consistency becomes harder as you grow, particularly if franchisees and franshisors are not on the same page. We’ve seen this at a number of prominent brands.
In October, franchisees at Jack in the Box gave a vote of “no confidence” in company leadership. More recently, several McDonald’s franchisees have pushed back on remodeling mandates, citing financial risk. These incidents represent problems that go far beyond maintaining operational consistency. That said, they still illustrate the importance of keeping everyone connected to the organization on the same page.
In franchised environments, there are more moving parts with the potential to disrupt company-wide operations. Different levels of management may have their own ideas as to what’s best for the brand. And when franchising takes the brand into new states, regions, or countries with different laws, ensuring that every location complies with unique specifications while maintaining company-wide operational consistency can be a headache.
That’s where having the right management tools in place helps. A restaurant management solution designed to cover franchised brands should provide the following:
- The franchisor has system-wide control over factors that affect their brand, like products and recipes.
- Each franchisee has local control over operational settings specific to their locations, like GL account names and numbers, and labor rules.
- Everyone has access to data that will help them improve their business.
A system with strong franchise functionality will help you hit your restaurant growth goals in 2019 with confidence.
Stephen Stone – Marketing Manager
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