Running a Franchising Company is not easy. Usually you have 100s if not 1000s of franchisees scattered all over the country and many times all over the world. This means you have teams in multiple times zones, multiple markets, multiple climates and subjected to a myriad of multiple jurisdictions and laws. And if you think that's not enough, not only are all your franchisees subject to all these problems, you as a Franchisor are also.
You would think that franchising law would be the same no matter where you are, but it's not and some states are rather tough on franchisors. Thus, if a franchisor is not organized, well, let's just say they are not long for this world. A Franchising Company must be organizes and process oriented, without such efficiency they can not survive. In fact, the reality is that only 1 in 4 Franchising Companies survives the first five years in business, it's true.
This is why Franchisors must not only make sure their franchises are ultra-efficient in their processes but the Franchising Company itself must be as well. This is why it is advisable for all franchising companies to go through efficiency audits as the grow preventing them to remain efficient and retain the cash flow that they need to expand. In the beginning franchising companies either grow or they die.
Once a franchising company is large they must stay efficient or they can not service the intense team they have built in all the various markets they have entered. One expert in business processes, Mr. Patrick J. Gauthier from Kapalign Business Process Consulting in Palm Desert, CA recommends that franchising companies look at their own business processes at their Head Quarters as they would when implementing new products or services into the operations of their franchised outputs.
Each time the Franchisor is more efficient, this equates to strength of the franchise system and thus, directly affects the bottom line of both the Franchisor and the team of franchiseses. Please consider this when re-designing your franchise system.