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A Better Solution for Franchisors

Updated: Feb 24, 2022

Learn how DATA can make your franchise more effective and successful.

We have focused our attention on the franchise market, speaking with franchisors, franchisees, and experts in the franchising industry. Several years ago, the IFA spent a considerable amount of time explaining to me what they saw as opportunities for the use of assessment technology. At the behest of several channel partners, we have reviewed many of the franchise-oriented assessment products currently in the marketplace. There were some excellent ones, some adequate but limited ones, and some outright junk. Some aimed at helping franchisors pick viable franchisees. Some aimed at helping franchisees hire the right people. Some promised teamwork or leadership or customer service or all of those and more. Regardless of the value or lack of value in what we saw, it seemed that there was a far better way to serve the needs of the franchisors.

Franchisors’ profitability and success depend upon:

  • Operating the franchise efficiently and effectively

  • Selecting franchisees that can successfully operate a franchise

  • Assisting those franchisees to operate effectively

  • The franchisees hiring the right employees for the franchise concept

  • Directing the franchise network to build the brand

All of these must happen if the franchise concept is to prosper and grow. The very best thinking and hard work remain dependent upon the variability of a huge number of people. In fact, the success of any franchise is completely dependent upon their management of that variability. DATA is the key to doing that time and again without the need for exceptional individuals or superstars. DATA becomes the operating system for both talent acquisition and talent management within both the franchisor and the franchisees.

"DATA is the keystone of the Franchise’s talent acquisition and talent management system. Using the same DATA with the same terminology streamlines and simplifies human capital discussions and strategies. As each person is added to the DATA, the companies knowledge grows, and the ability to act with fewer risks increases."

Franchisor Internal Use

Franchises often begin with an entrepreneur’s dream, powered by the passion, hard work, and talent of the entrepreneur. A successful franchise, however, requires a complete team. Many of the key members of that team must have talents that are quite different from those of the entrepreneur. DATA provides the specific understanding of each person’s strengths and abilities necessary to build an effective team. It ensures that recruiters can recruit; managers can manage; salespeople can sell; and that each person can deliver the results needed. The information from the DATA also provides a complete picture of the operational strengths of the team relative to the operational strategies of the franchise. Talent requirements become clear, and training needs can be identified proactively rather than reactively.

Franchisee Selection

DATA allows franchisee candidates to be reviewed on a much more comprehensive level. Many franchises compare candidates to “profiles” derived from assessing their top franchisees and combining that data into a single composite. That can be helpful, but it is limiting. For most well-designed franchises, there is more than one way to be successful. It may require a key set of abilities but there are multiple ways to assemble a successful team. DATA allows the franchisor to identify more candidates that can be successful with their franchise model. This gives the franchisor an advantage in the competitive market of selling franchises.

Franchisee Fast Start

Selecting a viable new franchisee is a good beginning. Now the work begins to transform that potential into a profitable relationship for everyone. DATA provides a clear picture of what is necessary to build the new franchisee an effective path to developing a productive business. The DATA can guide the training and coaching as the franchise takes shape.

Franchisee Hiring

The simplest way to duplicate the success of existing franchisees is to hire the same kind of people as they hired. DATA makes this an objective and easily implemented process, with each position in the franchise available within the DATA selection program. Not only does the DATA help to avoid bad hires, but it also accelerates the productivity of new hires with the onboarding, training, and management tools.

Franchise Business Consultants

Business consultants must serve a variety of different people, each with different needs and different business situations. The DATA enables the consultant to focus on the specific franchisee and their team. Their coaching and recommendations are now focused and more effectively rather than being broad-brushed across everyone.

Franchisor Oversight

The most powerful aspect of DATA for the franchisor is how DATA extends the franchisor's control and oversight across the entire franchise system.

  1. First, providing the DATA selection system to the franchisees, not only makes their hiring more effective, but it extends the “brand identity” as defined by the franchisor into the franchisee in a real and practical process. Both franchisor and franchisee benefit from the DATA.

  2. The DATA gives the franchisor an oversight into the hiring practices of each franchisee. They can correlate the franchisee’s performance metrics with the personnel, therefore controlling for the principal variable in most franchisee operations.

  3. In effect, the DATA offers an ongoing inventory of the human capital within each franchisee, each region, and the enterprise as a whole. This allows for marketing and operational strategies to be matched to the operational strengths available.

DATA becomes the operating system for human resources, providing both talent acquisition and talent management capabilities throughout the enterprise.

  • The information is immediately available wherever it is needed

  • There is no need for specialized training or expert interpretation.

  • The reporting text can be customized for the specific jobs within the franchise organization.

  • The DATA can support any training or consulting initiatives that may occur.

  • As the DATA accumulates, the analyses over time can yield important trends and performance insights that link to strategic and operational decisions.

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