How to Structure a Successful Franchise System

rhino7_How_to_Structure_a_Successful_Franchise_System
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Rhino7 has a long track record of successfully working with fledgling franchisors to help grow their brands into national franchise systems. Achieving success in franchising is all about first creating a very detailed and easy-to-replicate structure, then meticulously executing against that structure throughout each franchise unit.

Trust & Communication
Trust and CommunicationThe structure of a successful franchise begins with trust and communication. There must be a trusting relationship between the franchisor and franchisees, shaped through open and honest communication. Though the franchisor is the ultimate steward of the brand, the franchisees are the ones in the trenches so there needs to be a consistent stream of communication back and forth. The franchisees handle customers and operations on a frequent basis, making it possible for them to provide recommendations and feedback to the franchisor. When the franchisor is open to this sort of communication, it creates a high level of trust.

Support
SupportA successfully structured franchise occurs when the franchisor is providing the necessary resources and support to its franchisees. While the franchise is a homogeneous system, locally there can be minor differences. The duty of the franchisor is to be able to make decisions in the best interests of the franchisees within the system. It is common that what’s successful for the entire franchise system will also be successful at the franchisee level, having minimal situations that need to be tweaked along the way. A strong and supportive franchisor will give franchisees the tools they need to execute within the given system, but also be open to suggestions and tweaks.

Structure
StructureRhino7 knows the foundation of a successfully structured franchise system is built on trust, communication, and support. Then, these elements must be combined and implemented through a hierarchical reporting structure within the franchise organization in order to achieve positive results. Storm Guard consistently experiences growth due to the highly effective model put into place by Rhino7. Storm Guard is broken out into multiple segments of 5-6 franchisees each, where a separate GM is assigned to segment and each segment has its own complete business plan. The GM meets weekly with the franchisees and their teams to break down and discuss in detail what essential resources are needed for day-to-day operations, what challenges or opportunities might be occurring, and so forth. Having this structure in place means there is a contact person at all levels providing guidance and assistance, as well as working with the franchisees to set goals, and holding them accountable for achieving them.

No Franchisee is Left Behind
No Franchisee is Left BehindThe success of Rhino7’s franchise structure strategy allows franchises to stay ahead of the growth curve and ensures that no franchisee will be left behind. Rhino7 works closely with the franchisors to continually evaluate and monitor franchisee performance. By quickly identifying a unit that’s underperforming, that franchisee never reaches a point where it’s too late to make corrections and get back on track. Established trust through communication and the structural support of the organization will produce a successfully structured franchise system.