Franchising, due to its unique nature, fosters a certain degree of experimentation, freedom and creative practice. It is not uncommon to have an experienced veteran franchisee often deriving slightly different operational practices which, if properly researched and formalized by the franchise company, can have a dramatically positive effect on the community. Benchmarking helps a franchise system harness the disparate process executions of all franchise locations to focus in on what works
best and what does not.
No matter if a franchise system is in the food industry, retail or business services, no concept is outside the benefits of a focused benchmarking effort. In order to keep pace with competitors in your marketplace, streamlining common tasks and reducing costs are a continuing effort .
Benchmarking is important to the profitability of your concept as well as your franchisees individual profitability.
What are the most measurable aspects of your particular concept? If one is in the food service industry, it may be average sales per ticket or
average turns per hour. Business services often use average order price and basic customer profiling to great effect.
some of the typical things a Franchis business would need to keep track of is
- How Do I compare myself with my Peer Group and Nationally
- Average YTD Sales
- Average Invoices
- What is Franchise rank within the Peer group for total sales volume