Food & Beverage

The Importance of Standardization in Franchise Business

There are many kinds of models and concepts of doing business, each of them has its own advantages and disadvantages. One business model that has a high level of profit is franchise business. Franchise business is a method of opening a business with existing licenses and trademarks, such as 7-Eleven and McDonalds.

Why a franchise?

Opening a franchise means expanding the brand’s network. If you own this business and someone else is interested, the opening of the franchise will be funded by a third party. Therefore, you don’t have to spend money to build or open new branches. It means the business will grow faster with less capital.

Supervision of the franchise business is also considered easier because the responsibility lies with each franchise owner. It is much simpler than a business owner having someone to supervise his business branch.

In addition, it is also possible that the supervisor will resign someday. It is different if the supervisor is the franchise buyer himself; of course, they will not waste the money they have invested in building the franchise. 

Their commitment to developing the franchise will certainly be bigger and more motivated in carrying out franchise managerial work. The risk incurred for the franchise business is also less. This is because franchise business management usually already has an organized system.

Talking about risk, it is closely related to the standardization that each franchise branch must have. If a business owner wants his business to last, he is obliged to pay attention to the standard operations for all franchises so that the business is also consistent and not easily disrupted.

The Importance of Standard Operations in Franchise Business

Imagine if you were the owner of a restaurant business with several franchise branches. One of your restaurant franchise branches is known for its unmannered and unfriendly service to buyers. It will inevitably affect other branches and the brand image of your restaurant entirely. Even though this only happens in one branch, over time people will stop going to your restaurant

Therefore, you need to pay attention to consistency in running the business network operating standards. Here are some things that must be considered so that your franchise can provide consistent products and services:

  • Implementing guidelines or rules for several aspects in all franchise branches, especially in customer service, cleanliness, and marketing.
  • Maximize training for franchise owners and employees so that the results are maximal as well.
  • Maintain communication. Communication problems often occur between franchise owners and certain branches. Thus, regular visits to just communicate are very important.

Application in Standard Operational Management

Certainly, it is difficult for you to ensure every franchisee is operating according to your company’s standards, especially if you already have many branches. If you think that maintaining standard operation is a challenge, then you don’t need to worry. There is one application that can help you transform the traditional franchise supervision process into a more practical and modern one, namely Nimbly Technologies.

One of the special features of Nimbly Technologies is carrying organizational management, from the manual checklist data into real-time information. You only need to send an operational audit questionnaire to each branch and know the condition of each branch in just one application, anytime and anywhere. Thus, you don’t have to visit franchise branches one by one if you want to check their SOPs implementation. 

Coordination of problems in the field can also be done through this application. It means that all of the company’s operational processes, which were originally manual, can be monitored digitally and can be directly followed up live. Isn’t it practical?

Key Takeaway

In managing a franchise business, maintaining operational standards is important. If your franchise business has developed quite a lot, you can use the application to help supervise it. Advances in technology make things easier.

Consult your business operations management with the Nimbly team for free.

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