The Secret to Becoming a Successful Multi-Unit Franchisee

Many people believe that when you invest in a franchise, you're going to get everything you need to be successful. As mentioned by my friend Brent Veach, a multi-unit franchisee who owns 55 Del Taco stores, nothing could be further from the truth.

Don’t miss my YouTube interview with him here! 

Franchisees need systems, which means that they require a set of processes, that also have a series of procedures within, and once these are all implemented the right way, together they produce a consistent result day in and day out. 

Think of systems like a car. When you turn the car on, a lot of processes and procedures have to happen simultaneously to make the car run and take you from point A to point B.

It’s the same when it comes to a business: you have to have those systems, processes, and procedures so your team is able to execute, day in and day out. When this happens, the business will produce a consistent result.

When you invest in a franchisee, you do get from the franchisor those systems, processes, and procedures to duplicate a brand, the product, the service, the image, and the regional and national marketing.

If you pick the right franchise, those systems are most likely already created, and all you have to do is follow those systems and procedures to execute the brand and obtain revenues.

But that’s only 50% of the secret to being successful. You also need the same level of execution for your business management. At The American Franchise Academy, we have identified four systems that you require to be able to run your business properly:

1. The System of Team: how to hire and retain the best people.
2. The System for Income: how to receive the money, make sure it makes it safe to the bank, and how do you analyze it to detect opportunities for more sales year over year.
3. The System of Profit: what you need to create in your organization to maximize the earnings.
4. The System to Scale: how to grow unit after unit.

Learn 3 ways to increase your revenue in this video.

If you don't have systems, processes, and procedures that you have trusted and verified, the likelihood of you succeeding will be low. To put it in other words, it will be very challenging for you to have a profitable and ongoing business. 

Difference between systems, processes, and procedures

Let me give you an example of a system, then a process, and finally, a procedure, analyzing the System of Team. Within this system, there are several processes. One of them is how to hire people. Another one is how to inspire them. There’s also the process of how to develop them and the process to reprimand them. 

Those are big processes, and within each of them, there are different detailed procedures that your team needs to know and understand. For example, in the process of hiring, the procedures that you need to define, document, train, coach, and monitor are:

• How to find a reliable recruiting resource.
• How to interview candidates to identify who they truly are.
• How to make the job offer, which will set the tone for the employee-employer relationship.
• How to onboard new workers to make sure their first experience is the best possible one.
• How to train and coach them.
• How to do a follow-up to validate their performance.

As you can see, in the System of Team and the process of hiring, there are different procedures that you need to master to execute at a high level of excellence in your business. 

Why do franchisees need systems?

When you buy a franchise, your franchisor provides a way for you to have revenues through a proven brand and all of the systems that come with that. But you, as a franchisee, are responsible for creating all of these other systems to be truly successful. Not only do you need to define them, but also to document them, then train and coach your leaders on how to implement them, and of course, the magic is always in the follow-up. 

There are a lot of systems that need to happen at the same time to get the business running. But perhaps you don't have the experience, the knowledge, or the mentors available to teach you how to do that.

That is where we help franchisees and what The American Franchise Academy does every day for our clients, so all entrepreneurs who get into the franchising world can be successful. 

Having the ability to implement those systems early on in your organization is what's going to set you up for success in the long run, and will allow you to go from one to five to more than 50 units.

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Reflections:

• How systematized is your business management?
• Do you have your procedures well documented and followed up?
• Are your leaders well trained on how to implement your processes?
• What can you do to have a higher level of execution in your business? 

WATCH THIS VBLOG on YouTube HERE.