5 Major franchise business Operations Challenges | PAZO

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5 Major franchise business Operations Challenges | PAZO

A Franchise is more than just another store outlet, it’s a big part of a franchisor’s brand image  and when your customers talk about how good a business’s services/ products are,it’s from their own experiences in one of the business’s franchise outlets.

That’s why it’s really important for franchisors to invest in tools that ensure that the daily tasks are properly done with the same standard operating procedures, mannerisms across all outlets. Before we get into how PAZO can help franchisors do that, let’s first look closer into some major and common challenges of franchising:

5 Major Operational Challenges in a Franchise Business

1. Communication and coordinating with the franchiser

Operational Challenges in a Franchise Business - communication

Sometimes reaching out to your business franchise owners can be the help they really need. Franchisors may use a variety of tools like whatsapp, email, etc but sometimes it can require more than that.

A more cordial, personalised communication method can not only resolve  issues but also allow franchisees to be more open and friendly towards franchisors.

A franchise business requires franchisors to work with cooperation of the franchise owners according to the requirements of the brand and this is where a friendly relationship will facilitate better understanding and coordination between both.

The communication facility between franchisors and franchise outlets should be set up in such a way that allows both to reach out instantly, at any time as there may be barriers that require assistance, training, etc from the franchisor. Also initially when starting out, a new franchise business may find it challenging to implement the standard operating procedures of the brand and so it may require the franchisor to oversee their daily tasks more closely. Having the right tools may save a lot of time and also get the job properly done.

A task management software like PAZO can help in all these aspects and make these operations more visible to franchisors. When it comes to training, demonstrating a new product/ research or working on advertisements, franchisors can integrate the same task management along with tools like online video calling  app for example to get these tasks done with less effort. 

2. Marketing Campaigns Planning and Tracking Progress

Planning and Tracking Progress

Creating and Executing a Marketing Plan can be a very complex process. It requires different details from the individual franchise businesses.

Small details like the type of product a customer prefers or the feedback can provide great insights into how a marketing campaign should be designed. But these details are not exactly known to the franchisor and compiling all  this data is nearly impossible.

So the process of deciding a marketing campaign can be like a hit and trial. And furthermore, because the franchise owners know so much more about the ground realities than franchisors, new and sudden changes in marketing plans which are added tasks to franchise owners can be even more frustrating.

While it may not be possible to completely avoid the ambiguity around these marketing processes, an effective sharing and communication platform can prepare and help everyone involved prioritize their time or even possibly share better ideas as these tasks may take time, budget, communication efforts and possible change of visual merchandising plan. 

3. Staff Recruiting and Training

Staff Recruiting and Training

Whether running their own franchise or working as a franchisor, hiring staff members and retaining them is a common problem. Training is critical in this business as consistency across all franchise outlets is very important.

Some departments have strict standard operating procedure checklists to follow and others may not need them.  The HR department has to take care of Outline obligations, Monitor franchisees and request regular reports regarding employment, Carry out regular compliance audits of franchised businesses, Listen to concerns that franchisees raise regarding the system and issues can’t be ignored etc.

There are some employees who need constant guidance to perform their jobs.  The challenge is especially prevalent at retail chains and shopping malls concepts, where front-line employees are the face of the brand, dealing directly with thousands of customers every day.

Franchisers have to keep an eye on what problems franchisees encountered, both expected and not, what they did to resolve them, and how helpful was the support from head office etc.

4. Franchise Store Daily Operations Management

Franchise Store Daily Operations Management

Constantly monitoring and reviewing the franchisee’s performance and keeping a library of communications with them will be hectic by using various platforms to be in the loop.

Right from emails, and phone logs to the field reports, action plans, letters, etc. all have to be structured in a way that the franchiser can retrieve info anytime. And it’s not the most convenient way as it requires more effort.

The field staff should be properly trained about the business they are providing advice on. Making sure that the field workers are visiting or working with franchisees on an appropriate schedule, or are visiting all franchisees based upon some calendar-driven number of visits etc. has to be monitored on a daily basis.

5. Compliance’s and Reporting

Compliance's and Reporting

As the business grows, it will be necessary to have someone in the organization to be responsible for franchisee compliance with the franchise agreement. In a situation where franchisees are not monitored for system standard compliance, it affects everyone in the system. A solution needs to be there for the franchisees to remind the deadlines. Compliance with the agreement not only covers system standards compliance but financial compliance as well.

Franchisers has to monitor every individual store’s marketing and operations performance. With proper reporting and analysis, the franchiser can get to know which stores are doing well and which are under-performing and need assistance.

Scattering of necessary data through multiple reporting channels creates confusion. The acquired franchise management portal should allow franchisers to keep track of the performance of stores over different locations in one place, giving them a professional, organized experience.

Read the link below to understand the challenges faced by operation managers to make the business a success:

Challenges faced by operation managers

How Can You Digitize Your Entire Franchise Business Operations With PAZO?

PAZO is a task assignment tool that digitizes all the operations that are driven through manual methods of reporting from the front line to the back office.

Pazo provides a comprehensive solution to address the complicated operational challenges in your franchise business. 

A variety of industries use PAZO daily to ensure compliance of their chains spread across geographies. Retail industry for instance uses it for critical standard operating procedure checklists like stores audit, stock audit checklists, safety audit checklist, housekeeping checklist, visual merchandising and much more.

Managing daily business operations and the workforce of your business is at your fingertips with a complete Pazo mobility solution.

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