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Kelsey Smith
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How Your Franchise Fee Structures Can Enhance Franchise Performance

A comprehensive study of over 2400 Franchise Disclosure Documents over a two-year period sheds great light on focusing on how varying fee structures including franchise fees, royalty fees, technology fees, and marketing costs can impact your franchise performance and growth.

The Correlation of the Initial Franchise Fee and Higher Revenue Potential

Initial Franchise Fees offers a grant to franchisees to access all your franchise brand assets and intellectual properties, support, marketing and more. The result of the study revealed a very noteworthy correlation between the amount of the IFF and a brand’s revenue. We found that brands that charged franchise fees around $40,000 or more enjoyed an average revenue of $1.5 million per franchise location. This amounts to 2.5X greater than franchisors charging $25,000 or less. In further analysis, those who charged $25k or less saw an average of $583,000 in top-line revenue per location, whereas those who had fees of $40k or more realized an average revenue of $1.5 million per location. Clearly this signals that those seeking franchisees could have a greater willingness to invest more in exchange for higher revenue potential. Franchisors should reevaluate and consider increasing their initial franchise fees to strengthen brand value and to assist in further growth.

Royalty Fees Equate to Stronger Support

Almost every Franchisee is required to pay a royalty fee which represents a recurring financial commitment towards the continued use of the franchise brand. The small percentage of franchisors that do not charge royalty fees are most often a “product distribution model” in which the franchisee is paying more to the franchisor for access to products that are proprietary to their system. However, the vast majority (94%) of franchisors are charging royalty fees, primarily as a percentage of monthly revenues. This approach is employed by 92% of franchisors. The average royalty fee currently stands at 6%, and our study reflects a consistent approach across a variety of vertical industries. We found that 80% of franchise brands are charging royalties within a median value of 2%. This is an indication that there is great consistency across franchises that potentially balances the ongoing support provided by the franchisor to help achieve operational success.

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Marketing Expenditures at the National and Local Level

There are very few fees that are more critical than the amount and way that marketing expenditures are utilized – after all, the purpose of business is in the making and keeping of customers. We find that the most successful franchise systems are those that have achieved a thoughtful balance between their national advertising and local marketing efforts. Our study found that 72% of franchise organizations are levying a national advertising fee, predominantly as a percentage of revenues (89%). In terms of local marketing expenditure, a majority (55%) will require their franchisees to spend on local marketing, with 79% of these that require a specified percentage of monthly revenues. The average local marketing spends required by franchisors currently stands at 2% of monthly revenues. This data reflects the necessity for franchisors to ensure that adequate marketing spend, nationally and locally so that they may remain competitive and support franchisee success.

Technology Fees are Now of Critical Importance

Many of today’s franchise leaders extoll the fact that their products and services are becoming more and more of an ante into the game whereas, technology plays a critical role in obtaining operational efficiency along with a competitive edge across your system. According to our findings, 61.9% of franchisors now charge technology fees, with the majority doing so in the form of a flat monthly rate. Not only is this required investment in technology becoming the norm, it is greatly valued by franchisees. 50% of franchisees acknowledge the significant value that is derived from technology provided by the franchisor. What is incredibly important to note is that franchisors that impose technology fees are likely to grow 36% faster over a two-year period than those that do not. This key takeaway accentuates the importance of strategic tech investments for enhancing a true competitive advantage and support for your franchisee’s success.

Enhancing Franchise Operations with FranConnect’s Royalty Manager and Flywire Collaboration

Add in FranConnect’s Royalty Manager solution, and you have a cutting-edge tool designed to revolutionize the way franchisors manage and collect royalties. And with its integration with Flywire, you’ll have a significant advancement in streamlining the collection of fees, both domestically and internationally, for franchisors. This partnership is further bolstered by the innovative Invoice to Pay and Sign to Pay programs, in which FranConnect utilizes Flywire’s global payment platform to facilitate the financial transactions that are pivotal to franchising operations.

This synergy between FranConnect, its Royalty Manager solution, and Flywire represents a transformative approach to addressing the complexities of fee collection and operational management in franchising. With these powerful tools, franchisors are equipped to navigate the competitive landscape more effectively, enhancing brand value, improving franchisee success, and driving overall franchise system growth in an increasingly dynamic market environment.

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Franchise Territory Mapping: Everything You Need to Know

If you’re building a franchise, choose your locations carefully, as they can significantly affect your future success. Territory mapping helps franchisors determine where to place units to maximize profitability and reach. It’s a tricky process that depends on many variables, from customer demographics to the landscape of a city.

Understanding territory mapping is crucial for any franchisor. Here’s everything you need to know about franchise territory agreements, technologies, and mapping strategies.

The Basics of Franchise Territory Mapping

Virtually every franchise uses some form of territory mapping to allocate regions to franchisees. If a restaurant owner wants to franchise their business, they likely won’t open a new shop just down the block. They know that this placement wouldn’t help them reach new customers, and it would likely pull customers from the original restaurant. Instead, they will open another shop in another part of town.

This example displays the basic ideas behind franchise territory mapping and its complexity. Suppose the franchisor decides to add more units. In that case, they might encroach on one of the existing territories or need to expand to all-new areas. As businesses grow, so does territory mapping, which must consider many diverse factors.

What Is Franchise Territory Mapping?

Franchise territory mapping is the process of dividing regions into territories for franchisees, which can go by names like operating territories and exclusive areas. The franchisor grants the franchisee exclusive or non-exclusive rights to operate in the territory:

  • Exclusive: If your franchise has exclusive territory rights, you agree not to set up another unit in the area that would compete with the other franchisee’s business.
  • Non-exclusive: Non-exclusive territories do not offer these protections. The franchisor can establish their locations or allow other franchisees to establish shops.
  • Hybrid: Some franchisors use a hybrid approach. You could offer exclusive rights for a few years or have an exclusive territory for one product but not another. Although more complex, this option can help balance unique needs.

A franchise can also have overlapping territories, in which multiple franchisees operate in the same space. In these situations, the franchisees often target different markets. For example, an apartment leasing company might have a branch dedicated to student housing near a college campus, even though it sits within a larger territory.

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Why Is Territory Mapping Important in Franchising?

The franchise territory model serves a few different purposes, such as:

  • Preventing cannibalization: Market cannibalization occurs when a new franchise unit causes another unit to lose sales. Essentially, the new location takes customers from the old one. While the aggregate sales might look similar, the overhead costs increase, and unhappy franchisees are making less than they once were. Mapping franchise territories helps prevent cannibalization by outlining clear boundaries between units.
  • Keeping territory distribution fair and profitable: Franchise territory maps often involve research on buyers within a region. By understanding and splitting up your customer base across different franchisees, you can better ensure an equitable division that helps everyone increase revenue.
  • Avoiding white space: White space refers to the areas that aren’t well-covered, such as gaps between locations. Mapping franchise territories allows you to identify white spaces and prevent or fill them.
  • Maintaining positive franchisee relationships: Franchisees are understandably frustrated when another franchisee encroaches on their territory. Territory mapping helps prevent this situation and allows you to communicate your policies easily with existing and potential franchisees. When your territory agreements are clear through robust mapping, franchisees know exactly what they’ve signed up for and what to expect.

Reasons why territory mapping is important

The Importance of Franchise Territory Mapping for Business Growth

While territory mapping is necessary for any franchise, it’s essential for growing businesses. Growth entails new locations and franchise territory mapping ensures each new unit is placed in a profitable spot and selected according to relevant data.

How Franchise Mapping Contributes to Growth

Franchise mapping is a critical foundation for a growing franchise. It allows you to identify the most profitable opportunities and attract more franchisees. Mapping itself can help you reach customers more effectively, but it’s also a great marketing tool for attracting franchisees.

Territory mapping can give a franchise candidate more information on their potential customer base and profits by basing their territories on the characteristics of other successful franchise units. This offers reassurance and supports marketing efforts to potential customers. A map visualization also helps communicate boundaries.

Franchises with exclusive territory are particularly enticing for candidates because they offer protection. Your agreement to keep other units out of their territory gives the franchisee peace of mind, knowing that you won’t hurt their sales. When used appropriately, franchise territory maps can drastically transform your approach to business expansion, arming you with the correct information.

Franchise Territory Mapping and Franchisor Sales

If your goal is to increase sales, franchise territory mapping can also help. By avoiding cannibalization and gaps in coverage, mapping can help you reach every customer while leaving ample space for franchisees to work. This approach uses data to drive decisions.

Population data is valuable for any business owner, and territory mapping is ideal for reaching different populations. Defining franchise territories can reveal customer demands and opportunities even within one region.

One valuable benefit of territory mapping is enabling cooperation among your franchisees. Let’s say you identify different customer bases surrounding two locations of your financial advisory business. Location A is surrounded by young professionals, and Location B is surrounded by older adults.

Your franchisees can target their services for these customers and lean on each other’s resources. If Location A has a problem with retirement accounts, the team can call Location B for support and vice versa. They could also share resources during busy periods.

Your territory map can help you make decisions to maximize sales opportunities, improve the franchise’s overall reputation, and bolster relationships between franchisees.

Population data is important for territory mapping

Common Mistakes in Franchise Territory Mapping and How to Avoid Them

Building a territory map is often complex, and many franchisors make similar mistakes. Some problems to watch out for include:

  • Cannibalizing customers: Cannibalization is a quick way to anger franchisees and reduce revenue, so avoid overlapping territories or placing units too close together.
  • Not considering buyer characteristics: Consider your customers’ demographics when choosing a location.
  • Not communicating policies to franchisees: Transparency is the best policy, so communicate your approach to franchise territory mapping upfront.
  • Keeping your scope too narrow: Avoid tunneling on one aspect of the location, like traffic or nearby competition, while ignoring others.

Strategies to Avoid Mistakes in Franchise Territory Mapping

There are many different approaches to franchise territory mapping. Here are some tips and techniques to get started.

1. Choose the Dividing Lines Carefully

Territory maps can have boundaries based on many factors, such as census tracts, zip codes, or more prominent features like rivers and roads. Consider these aspects carefully and draw your boundaries so each territory has the necessary number and types of customers. For example, sticking to easily referenced borders like highways works well — unless it creates wildly diverse customer bases that would be hard to manage.

2. Consider Using Designated Market Areas

Designated Market Areas (DMAs) represent a geographic area that shares a media market, such as radio and TV ads. Ads are often purchased for an entire DMA and shared among those audiences. Marketing a new franchise is easier if you piggyback off established efforts from an existing franchise within the same DMA. You could also use DMAs to create your territory borders.

3. Determine Methods of Reaching Customers

The nature of your business affects territory size. For instance, a fast food chain stays put and needs to attract people within a certain distance. A service-based business such as a plumbing company may go further to reach customers. Consider how these behaviors will affect the necessary makeup of your territory.

4. Start by Defining Your Ideal Territory

Try working backward by figuring out what you want from the perfect territory. Determine its size and the type of customers that live there. Then, identify areas in your region that align with these characteristics.

Technology’s Role in Franchise Territory Mapping

As with many business activities, technology can streamline your franchise territory model and provide valuable tools for visualization and analysis. Territory mapping software can vary widely in complexity. Some support basic visualization, allowing you to plot territories on a digital map. Other software systems, like integrating third-party population data and performing white space analysis, support more advanced capabilities.

Whether you take a basic or advanced approach, territory mapping software can be valuable for communicating territory information with franchisees and identifying opportunities only a computer can find. Mapping technology can also help you organize large amounts of information on your region so you can use it effectively.

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Exploring the Legal Aspects of Franchise Territory Mapping

One of the reasons establishing a straightforward approach to territory mapping is so important is that not doing so can create legal implications for your franchise. Franchisors must understand the legal requirements associated with outlining territories and determining exclusivity. Work with an attorney with plenty of experience in franchising to help ensure your territory mapping plan complies with relevant laws and regulations.

Territorial Protection in Franchising

Without clear definitions, the meaning of your territory might be up for debate. Franchisors and franchisees may have conflicting strategies for success, and territorial protection helps give franchisees more control over their local market. Still, a protected territory is not the same as an exclusive territory, and the term requires clarity in the franchise disclosure document (FDD).

Your FDD must outline the protections you will offer in detail, usually under Item 12, to prevent misunderstandings and potential legal troubles. You must also avoid certain activities that could still be legally problematic, like encroaching on a territory under a different brand name or singling out one territory for encroachment.

Many franchisors grant themselves some flexibility while maintaining territorial protection in franchises by carving out exceptions, such as:

  • Captive markets, like malls, stadiums, and airports.
  • Online distribution, ensuring the franchisor can sell online to customers in a territory without encroaching.
  • Private label rights allow the franchisor to sell in the territory using a different brand name or trademark.
  • Performance contingencies require the franchisee to meet specific goals to keep exclusivity.

Exclusive Territory Rights

An exclusive territory is one in which the franchisee is the only one operating, but exclusive territory rights can entail other caveats. Franchisors should consider these elements and, if needed, include them in the FDD:

  • Whether the franchisor can advertise and sell within the territory: Even if other franchisees can’t operate, franchisors may still want to do business in their territories.
  • Whether the franchisee has the right of first refusal on adjacent territories: If you create a territory next door to an existing franchise, the existing franchisee would have the first opportunity to buy it.
  • If the fees and royalties for exclusive territories change, you could offer exclusivity at a price by charging franchisees higher royalties and fees.

Can a Franchise Buy Back a Territory?

Franchises can often buy back territories according to the stipulations of the original agreement. For example, if you want to expand your franchisor-owned units or terminate an agreement with a franchisee, you could buy back the territory, regardless of whether the franchisee wants to sell. Usually, this will occur at fair market value.

How to Sell a Franchise Territory

Selling a franchise territory differs slightly from selling a unit without a specific location. Choosing a location is sometimes part of the appeal of joining a franchise. However, having a territory already selected also means you’ve already done some legwork. When choosing the location with your territory mapping strategy, you should know the territory’s customer base and understand the overall landscape.

Before talking to franchise candidates, build a materials package showing off the territory’s best selling points. Is it in a high-density area? Do you offer franchise-exclusive rights? Focus on developing a marketing strategy to gather qualified leads.

The Role of Data in Franchise Territory Mapping

Whatever strategies you choose, an effective franchise territory model always depends on high-quality data. Consider a combination of several types of data:

  • Franchise data: FranConnect can help in this area. The platform can store, track, and analyze data for all units in your franchise.
  • Population data: You can turn to third-party organizations that collect and maintain information databases for demographic and economic data. Some territory mapping software includes population data.
  • Competitor analysis: Many businesses offer competitor analysis tools and services to help you see what you’re against in certain areas.

This information can help you understand the whole picture and avoid gaps when defining franchise territories. While you can map territories without any direction, a data-driven approach is essential for limiting risk and setting you and your franchisees up for success.

Grow Your Franchise With the Right Franchise Management Resources

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With so many factors affecting territory mapping, you can understand why it deserves so much thought and attention. Effective franchise territory mapping is crucial to business growth, helping you identify profitable locations, reach your customers, and maintain good relationships with franchisees. Now you know what to watch for and how to conduct territory mapping successfully—let FranConnect help with the rest. We aim to arm franchisors and franchisees with the necessary resources to succeed.

After building your franchise map with one of the above methods, contact FranConnect for actionable next steps, like selling to franchise candidates and managing your finances. Our franchise management platform helps you gather and analyze data, develop your franchise, engage with franchisees, and maximize revenue.

Request a demo today to see FranConnect in action.

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Using Stock Images in Your Franchise’s Branding: Yay or Nay?

Visit any sales website, and you likely won’t have to look long to find a stock photo showing satisfied customers or an appealing display. But does that mean you should be using them on your website?

As a franchisee, your goal is simple — draw in new visitors and show them why your business is the best choice. While stock photos can help you build your online aesthetic, there are likely much better options for you to achieve the same. Learn what stock images are and what you can do differently with FranConnect today.

What Are Stock Images?

Stock photos are images created for a variety of uses. You see them every day — they can be anything from a group of people laughing together to a picturesque sunset on the beach. They are generally mass-produced images that marketing companies sell for people who cannot create or take images of their own, and they’re a favorite among businesses and franchises looking to save time in their advertising campaigns. You may see them on:

  • Billboards
  • Textbooks
  • Pamphlets
  • Websites
  • Product listings

Cons of Using Stock Photos for Marketing

Despite their popularity, using stock photos comes with a laundry list of things to look out for. While you can use stock photos for your business website, the images tend to appear:

  • Unoriginal: Even if you pay for your stock photos, they may be subject to many copywriting laws and similar legalities later on. The best way to protect yourself and your brand from potential legal issues is to create original images on your own so that there is no question they belong to you.
  • Off-brand: Even the highest quality stock photo will not align precisely with your brand’s style. You may need to spend extra time editing and adjusting them to fit your franchise’s aesthetic. In some cases, it may be easier to take your own images so that you can make them how you want them.
  • Disingenuous: Stock photos are created with the intention of versatility, so they’re unlikely to perform exactly how you are envisioning them. When people recognize an image as a stock photo, they might see it as a brand taking the easy way out, like they do not care about their marketing materials — and maybe even their products.
  • Repetitive: Since stock images are free and available to anyone, there’s a good chance that any stock photo you use is already on another website. To viewers, it will be obvious that you’ve used the same resources, leading them to wonder how your business is better than any other. If it’s important to you to have a website that is completely unique from competitors, it’s best to develop images on your own instead of browsing stock photos.

Pros of Using Stock Photos for Marketing

While these cons are usually the reason brands avoid using stock photos, there are a few benefits to make note of. After all, franchise stock images are popular for a reason. When someone decides to use a stock photo, it’s usually because it’s:

  • Easily accessible: A simple online search of “stock images” will give you hundreds of stock photo websites at your disposal. Even the most novice internet users can easily find and download stock photos to suit their needs, making it a popular choice among startup businesses and those still learning how to work their websites.
  • Cheaper: Creating original photos can potentially cost a lot of money. Depending on the photos you want, you might have to hire a photographer or videographer and models for the shoot, schedule a time to take the pictures and find someone to edit them to your liking. Stock photos can be free or come at a flat-rate price — making them cheaper than trying to hire someone to take your photos. In short, stock photos can save time and money you can use to invest in other parts of your franchise.

Discover FranConnect’s Suite of Franchise Management Software

Unless your budget is very tight or you’re running out of time, original images are the way to go. They can help your business in the long run, just like having a platform like FranConnect to help you scale your franchise.

Ensure Brand Consistency

As one of the country’s leading franchise support providers, we know there is often a better option than using stock photos to boost sales and marketing efforts. Learn new ways to meet brand guidelines and set new performance standards with our platform today. Request a demo online or call us at 833-438-7523 for more information.

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FranConnect Announces Acquisition of RizePoint, A Leading Provider of Quality Management Systems for Multi-Location Businesses

Acquisition brings advanced QMS capabilities to brands and multi-unit operators and demonstrates FranConnect’s continued path toward becoming the largest and most comprehensive growth and operational platform for multi-location businesses worldwide.

HERNDON, Va., February 27, 2024 – FranConnect, a market-leading provider of sales, operations, and marketing solutions to franchises and multi-location businesses announced today it has acquired RizePoint, a leading provider of quality management systems (QMS) serving global restaurant, retail, and hospitality brands. This is FranConnect’s third acquisition over a four-year period and marks another significant milestone for FranConnect in extending its reach beyond franchise brands to serve the operational needs of the broader ecosystem of multi-unit owners, locations, front-line employees, and suppliers.

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Questions to Ask During an Interview Between a Franchisor and a Franchisee

Relationships are crucial to starting any successful franchise. During the initial interview with a franchisee, you want to learn about their business approach. After all, this person will be your partner for the foreseeable future.

Like a traditional job interview, this discussion should be a two-way street. The franchisor and franchisee should evaluate each other to determine if they would be a good fit. To help you make this decision, we’ve compiled some hard-hitting franchise interview questions and answers.

Questions a Franchisor Should Ask a Franchisee

First, here are questions for a franchisor to ask a franchisee. Your job as a franchisor is to determine whether this person will likely succeed in operating a unit for your franchise. While the criteria will look different for everyone, these questions can help you zero in.

1. Why Does This Type of Franchise Interest You?

When someone wants to be a franchisee, they often have multiple franchisors in mind. This question can reveal their passion for a specific industry or brand. Maybe they’ve eaten at your restaurant since childhood or see a potential unmet demand for your services. Excitement and genuine interest often rub off on other people and can help the franchisee network, hire passionate employees, and represent the brand well.

2. Where Do You Plan on Opening This Franchise?

Depending on how your franchise handles location planning, your franchisee may already have a spot in mind — bonus points if it’s in their hometown. A franchisee can lean on existing connections and possibly even a local reputation by opening a location in their community. If they’ve already found a location, they’ve simplified part of your job so you can maximize sales with a unit that hits the ground running.

3. Have You Ever Served in a Leadership or Management Position?

While franchise experience isn’t always necessary, some leadership or management skills will help. The franchisee will have many employees reporting to them, even if they hire a manager to handle day-to-day operations. Understanding this responsibility and the unique dynamics of management is crucial.

4. Do You Have Experience in the Industry This Franchise Falls Into?

Part of the appeal of a franchise is that the franchisee doesn’t need to build from the ground up. They benefit from the existing brand and any training or support you can offer. Still, you will want to know if they have experience that will help them in the role, like work in the industry, a business degree, or employment at a similar business.

5. Have You Ever Been a Franchisee Before? If So, for What Franchise?

Some franchisees have previously owned a franchise unit, so it’s worth asking about. They may be familiar with the structure and primed to dive in. If the franchisee had an unsuccessful experience with a franchise, ask about what they learned. Failure is often the best teacher, so don’t count them out.

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6. What Makes You a Good Fit for This Franchise?

Like most jobs, your franchisee needs to be a good fit with your franchise’s values and beliefs. Someone who embodies your franchise brand can help you succeed. If they align with the company, you will likely find a better working relationship, too.

Helpful features of franchise management software

Questions a Franchisee Should Ask a Franchisor

If you’re on the other side of the table and looking for questions to ask when franchising, you’ll also need to ensure the franchisor is a good fit. You’ll invest a lot in this partnership, so make sure it’s mutually beneficial and aligns with your goals. Here are some examples of what to ask when buying a franchise.

1. What Are Your Royalties and Fees?

This first question to ask a franchisor before buying will significantly affect your finances. Franchises can have wildly different royalty and fee structures, so make sure you understand your ongoing and startup costs. Royalties are typically a percentage of your revenue, while initial franchise fees cover startup costs like licensing and support staff. Ask about other ongoing fees, such as tech support or marketing.

2. What Type of Technology or Software Do You Use?

The technology behind a franchise can significantly impact your day-to-day operations. From point-of-sale systems to accounting software, ask about what you can expect. One of the most impactful programs for the franchisee is the franchise management system. This platform determines how you interact with the franchisor and manage your unit. Here are some helpful features of franchise management software.

  • Reporting tools to help you meet your goals
  • Communication with franchisors
  • Employee training resources
  • Guidance for the franchise’s brand, values, marketing, etc.
  • Payment processing and calculations for royalties and fees

If your franchisor doesn’t have a franchise management platform yet, FranConnect has various features to help you and your franchisor succeed.

3. What Goes Into the Location Selection Process?

Some franchisors already have locations selected or retain the right of final approval. Others are a little more relaxed. Talk to your potential franchisor about their approach. You may be able to choose your location or get help from to find one.

Another valuable topic to discuss is how the franchise manages territories. If you open a location and the franchisor allows someone else to open another right down the road, the second location could threaten your success. Many franchisors offer exclusive territories to protect you from these situations.

4. Do You Offer Ongoing Support and Training?

One question to ask a franchisor before buying is what kind of support you can expect. Some franchises are more hands-on than others. If you’re new to franchising, a supportive franchisor might be preferable to one that gives you more freedom.

Consider areas like training, marketing, and tech support. Look for a franchisor who offers assistance that aligns with your comfort level.

5. Can You Give an Estimate to the Total Investment Needed to Open a Franchise?

We already mentioned initial franchise fees, which are only part of the startup costs. Other expenses might include:

  • Real estate purchases or renovations
  • Professional services, such as lawyers and contractors
  • Equipment, furniture, and supplies for general operations
  • Insurance, including workers’ compensation, property and auto insurance

Ask the franchisor for a ballpark estimate of what you can expect.

Use FranConnect to Manage Your Franchise

Whether you’re a franchisor or a potential franchisee, the right technology can significantly affect your experience. FranConnect offers various franchise management tools, from training resources to payment processing and reporting.

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Before you dive into your next partnership, consider how FranConnect can set you up for success. Request a demo to see it in action or call us toll-free at 844-336-1017 for more information.

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How Businesses Can Benefit From Using Business Analytics

Understanding your company’s performance is vital for business owners since it helps them make critical decisions for the future. That’s where business analytics comes in. Business analytics provide detailed insights that make it easier to measure your company’s performance, establish actionable steps to achieve your business goals and solve reoccurring problems within your business. This post will explain how data analytics helps your business expand and thrive in a competitive market.

What Is Business Analytics?

Business analytics is a method of interpreting data to find valuable performance patterns and insights. Examples of business analytics tools and techniques include machine learning, predictive analytics, and natural language processing. These tools transform data analytics into usable insights to determine your website’s performance. You can use these insights to make decisions and improve your marketing strategies to reach more people.

Analytic tools need clear and accessible data to provide real-time, accurate business analytics. Several tools and cloud storage software platforms exist to access and process your vital data to provide valuable business insights.

How Can Businesses Benefit From Using Analytics?

Identifying patterns and trends in your business data helps you find ways to change your business practices for a more favorable outcome. Here are a few specific benefits of business analytics:

Improve Customer Insights

Your goal as a business is to improve your customers’ experience when they use your products or services. However, it may be challenging to enhance their experience if you know how they feel. Business analytics tools analyze data to create detailed customer profiles, allowing you to understand individuals’ behavior to provide tailored services to meet their unique needs and preferences.

Track KPIs

Key performance indicators (KPIs) are quantifiable measurements that evaluate your company’s long-term performance and can determine your strategic, financial, and operational achievements compared to other companies in the same industry. Business analytics track your company’s performance metrics by collecting data and converting it into measurable insights you can display on charts and dashboards.

Simplify Decision-Making

As a business owner, you have many decisions to make every day. Business analytics can provide insights that guide you in making informed decisions. Business analytic tools use predictive analytics to suggest the best responses to changes in your business. These tools can use sales data to determine the chance of success, helping you decide on your company’s right course of action.

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Mitigate Business Risks

You are likely no stranger to business risks. Legal liabilities, employee safety, and delayed deliveries are just some risks your business may experience. Business analytics models can evaluate business data, such as your location, product demands, and current inventory, to predict potential risks and allow you to prevent them. Business analytics can also help you recover from setbacks by recommending a suitable solution.

Enhance Data Security

In addition to mitigating risks, business analytics tools can also identify security vulnerabilities and help you protect your data. Some data analytics models can use information from previous data breaches to strengthen security and prevent recurrence. Investing in business analytics solutions will help you protect your company’s sensitive information and maintain compliance with privacy regulations.

How Can FranConnect Benefit Your Business?

At FranConnect, we offer analytics solutions for franchises and multi-location businesses. FranConnect’s Analytics includes a catalog of pre-built analytics to provide your company’s development, operations, and finance teams with valuable insights that streamline decision-making. We use scorecards, benchmarks, and dashboards to represent your company’s performance, allowing you to increase profitability and strengthen your brand.

FranConnect’s Analytics catalog has a user-friendly design to ensure you get the most out of our tool. We have optimized the catalog’s dashboard and scorecard to be mobile-friendly so you can access your data no matter where you are. Experience all the benefits of business analytics with our comprehensive and innovative solutions.

Contact FranConnect for Analytics Software You Can Trust

Would you like to know more about FranConnect’s Analytics and other catalog solutions coming soon? Our experts are happy to assist you with a tailored solution to expand your units. Feel free to request a demo or contact us directly to speak to a member of our sales team.

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