4 Systems for Multi-Unit Franchisee Success

The secret to multi-unit franchisee success lies behind the systems that allow them to delegate operations with confidence and focus on leadership, strategy, and growth.

  • There are four systems that these franchisees implement in their organizations to do exactly this. The best part is you can learn these strategies to be just like them!

First, let’s define what is a system. This refers to a set of processes and procedures that, when implemented well, produce a predictable and consistent result. 

This is why franchising is so effective! In this business model, the founder of a proven brand created systems around a well-positioned and desirable product or a service so that you, as a franchisee, could duplicate those processes and procedures with a high level of excellence, and then obtain the expected predictable results in your own business.

Do you Have the Right Franchise? 5 Clues to Find Out

 

Success systems defined by the franchisor

There are three types of...

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Why You Need a Management Manual

When you invest in a franchise you receive detailed step-by-step guidelines to duplicate the proven brand systems. These are contained in an operations manual, which you must follow to know how to operate the business.

Having this document is a great benefit for the new franchisee because then they can sell a desirable product or service and reproduce the brand, image, and marketing efforts the same way the franchisor does. This brings customers and revenue to their business.

But this is only half of the process in the franchise industry. And, although it is great to have a brand that brings revenue, revenue is not profit. 

  • In order to have success in the long term, you also need to implement business systems, documented in a management manual. 

Today’s blog will review what should be in that management manual and the benefits of investing time and effort in this key task.

 

Who should write down the management manual?

Bad news the franchisor doesn’t...

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What’s Ahead for 2023?

people planning profit Jan 03, 2023

A new year always comes with predictions and forecasts. In this blog post, we’ll review the things that may remain the same, what may change, and tips on how to tackle 2023 to make it the best possible year for you and your business! 

It all starts with facing the reality of what is happening in your business. That means knowing what's real, what's not real, and what you need to deal with because, unless you open your eyes and see what is there, you won’t be able to make it better.

Once you do that, you have to look at “the low-hanging fruit”, meaning, to detect what are the things you can do, that are under your control, to move the needle forward. Only then you’ll be able to win more than others.

That is something that the CEO of Domino’s Pizza taught me a long...

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The 2022 Year in Review: The Good, The Bad, The Ugly, and its Lessons

 

What a year it has been! Yes, the last three years were significantly difficult for the industry, but 2022 definitely earned its name as “a comeback kid”. 

  • While there were lots of challenges, it also taught us that the franchising world can overcome a lot. And that, when the opportunities are right and available, we can really maximize those possibilities.

Let’s review the aspects that marked this past year, between the positive things, the most impactful, and the learnings that all these events taught us to prepare ourselves and our organizations for 2023.

 

The good…

The last 12 months were amazing for the growth of many brands across industries, especially those that had the systems and the infrastructure ready to combat the problems and take advantage of the opportunities. 

A lot of this explosive growth in 2022 was fueled by the fact that, early in the year, there was a low cost of capital for franchise developers. The scenario...

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How to Avoid Being an Overwhelmed Business Owner

It is said that when you are at the top, the buck stops with you as a business owner or a franchisee. While it is true that you are responsible for what happens in your company, this doesn't mean that you must do it all. It doesn't mean that at all.

  • Being accountable for everything, and actually doing everything, will lead to more stress, problems, and a constant feeling of being overwhelmed. That does not do you any good as a leader of your organization. 

Believe me, I have been in situations like these constantly, and I have to redirect myself to reduce that level of overwhelm and still get things done. That’s what I'm going to share with you next, some tips for business owners and leaders to eliminate the overwhelm.

 

Why do business owners feel overwhelmed?

Independent business owners, entrepreneurs, and franchisees tend to be overwhelmed because they want things done in a certain way and believe that nobody else can properly execute the business but them, at...

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Why District Managers Fail (and How to Prevent it!)

Superstar general managers get promoted to district managers every day. But unfortunately, those promotions are not always successful and the new district managers fail at their job.

  • Business owners tend to think that, because these employees did such a good job managing one unit, they’ll for sure be great multi-unit leaders. The reality could not be further from the truth. 

Why does this happen? In my +35 years of experience in the franchise world, I’ve identified three of the reasons why district managers fail, as well as the strategies you can implement to help ensure their success in the long term.

 
Reason #1: The district manager’s job is completely different from their previous position

General managers are required to execute the brand and business management systems within the four walls of the unit. And they often work shoulder to shoulder with the one-unit franchisee, because these business owners get involved with the operation, sometimes...

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Multi-Unit Manager vs. Multi-Unit Leader, Which One Do You Need?

Do you know the difference between a Multi-Unit Leader and a Multi-Unit Manager? People tend to confuse these two and even use them interchangeably which is not only confusing but also dangerous for your business!

  • There is a significant difference in these concepts and if you are –or plan to be– a multi-unit business owner you need to understand this to make better decisions, or it can cost you big time.

Let’s review the differences between each so you can determine which one you need in your business. 

 

What is a Unit Manager?
  • A unit manager is the leader of a business unit and they are responsible for everything that happens inside, as well as for the team's performance and results.

They are also accountable for the execution of the brand systems (the product, the service, and the image) and of your business management systems (people, team income, profit, and growing that unit's results). 

Learn all about the biggest secret in the franchise...

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Why You Must Train Your District Manager

Why did you become a franchisee? Some of you might have been corporate executives that wanted to have your own business. Perhaps you retired and we're looking to invest in something productive. Maybe you intended to build an enterprise to have time and financial freedom. Or you are just a dreamer that always wanted to operate your own business and be in charge of your life

  • Whatever your reason to become a franchisee, there is something that you all have in common: you wanted to have the power to own your destiny. 

When you have one franchise unit, you are actually acquiring a job because its cash flow and profitability don’t allow you to be independent.

That is why here at The American Franchise Academy we encourage investors to become multi-unit franchisees because that’s how you multiply your profitability.

Once you do that, you are able to hire a district manager to whom you can delegate operations. By having this professional on your team, you can...

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The Power of Being Thankful

Entrepreneurs often had difficulty being thankful for what they are going through, especially in the last couple of years. Sometimes the ups, but especially the downs, are just too much to bear, but we must do it if we are committed to accomplishing our goals and dreams.

How can we turn those negative experiences into positive ones for our lives and our businesses? I believe we can do that in two ways:

  1. Being thankful for what we have right now
  2. Giving what we can, to who we can, every day. 

I remember when I was a child my family lived very humbly. I experienced many things through my friend’s families. One, in particular, had a chalet in a beautiful lake in Guatemala, where I was born

She invited me quite often so I got to experience many things at this gorgeous place: she had a boat so we learned how to waterski there, we swam in the lake, went to cool places, and spent the days just surrounded by beauty. It was amazing! 

Another friend had a farm with...

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District Manager: How Many Units Should They Oversee?

Multi-unit franchisees can truly have time and financial freedom. But the more stores they operate, the less attention they can give each one.

  • That’s why having a district manager becomes critical to ensure that all units function optimally. 

But, how many stores should they oversee? Here are five considerations you must analyze to make sure the district manager performs at their best.

 

1. Distance

If the units are far away, your district manager will spend a significant amount of time getting from one store to another.

And, if the distance is considerable enough, there may be an increase in expenses like gasoline, hotel (if they have to spend an overnight), food, and other supplies required to travel.

This means that even within your organization, how many units a district manager should oversee might differ, depending on how close or far the units are.

 

2. Complexity

How complex your business model is and the industry you operate in will also...

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