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