Franchising has become a common medium for conducting business today. Traditionally, we may have associated franchises with food and product retail, however these days, franchises stretch into all industries from automotive, professional services, education, medical services and the list goes on. The franchise model is quite appealing as it can increase chances of success with an established product or service as well as providing a solid platform for setting up and running a business.
In order for head office and their franchisees to perform well, management cloud reporting and analysis is a must. A head office needs to know how each franchisee is performing so they can assist underperformers and understand/learn from the best performers. Franchisees benefit from knowing how they compare amongst their peers. Spotlight Multi has a number of pages and features designed specifically for head office and franchisee reporting needs.
Rankings and Anonymised Rankings
The rankings page lists the top 20 franchisees for each user defined KPI. Report across a range of financial and non-financial KPIs from revenue, gross profit, net profit, new customers and more. See additional statistics such as the average, top 3 and bottom 3 averages for each KPI to get insights into franchise benchmarks. The rankings page can also be used to quickly see whether all franchisee data has been recorded correctly in the accounting system. Franchisees with results that are significantly different to benchmarks (higher and lower) likely need to be investigated to ensure their data is correct.
Anonymise the rankings page with a click of a button to produce a report which can be sent to franchisees. Franchisees will be able to see how they compare against other stores without revealing the names of those stores. Anonymised rankings can incentivise franchisees to improve performance or help them understand which parts of their business are underperforming compared to peers. It can help them understand how ‘over’ or ‘underspending’ impacts their business and what are acceptable margins.
The exceptions page provides the head office with a quick snapshot of how each franchisee is performing against franchise targets or benchmarks that have been set. If a franchisee is underperforming in a particular category, the category will be highlighted in red. This result or a combination of results helps paint the full picture as to why a particular franchisee did well or not so well.
While the rankings and exceptions pages provide valuable insights, as a franchise grows, the need to compare ‘like with like’ will soon become apparent. A store in a city with 10 million people is naturally going to outperform a store in a rural area. Comparing city stores against city stores and rural stores against rural stores will give better insights. Use the categories feature in Spotlight Multi to define or apply tags to franchisees. Then filter the rankings and exceptions pages by these tags to report on franchisees that share this tag. This will provide the best data for analysis and good decision making.
These are just a few highlights that Spotlight Multi can help franchisors and their franchisees with. To see how our franchise clients benefit from Multi, please view our case study from The Cheesecake Shop, a large franchise organisation with 200+ shops across Australia and New Zealand.