Franchisee Performance Groups
A Franchisee Performance Group is a group of six to eight franchisees who meet on a regular basis and deep-dive into financial, operational, planning, and marketing best practices. The peer group members also act as an advisory board for their fellow members, holding them accountable for their goals, keeping them committed to the program, and staying focused on improvement.
Benefits to the participating franchisees include:
- Goal setting
- Establishing benchmarks
- Comparing metrics with peers
- Direct feedback and accountability from peers
- Peer relationships and support
Rotate the Franchisee Performance Group meetings to each of the member’s locations so other members will be able to view the operations and compare them to their own.
Meetings typically last one to two days and each franchisee is given a specific timeframe (usually 30 minutes) to present their business’ financial metrics and goals and receive direct feedback from their peers.
Franchisee Performance Groups require a serious commitment from the franchisees and the franchisor as scheduling, time and travel is required.
Because of the depth and analysis of the franchise unit economics that this type of program provides, it is important that participating franchisees be matched with others of similar size and structure. In addition, the chart of accounts for each franchise must be standardized for accurate comparisons between locations.
No franchisee-facilitated program that I am aware of can dive into financial best practices as seriously as Franchisee Performance Groups can; and not all franchisees can, or will participate. However, established Key Performance Indicators (KPI’s) from these groups can be published for the entire system to benchmark and learn from.
Franchisee Performance Groups fully embrace and leverage the very reason franchise systems exist – to provide direct networking and sharing of best practices for franchisees to grow their businesses.
For that reason, it is important for the franchisor to establish and help initially guide a group, then step back and let the members direct and manage the group on their own without “big brother” watching.
The results these groups achieve can be astonishing; not only for the members, but for the impact they have on the entire franchise system.
Want to learn more? Give me a shout for a free consultation.
Call/Txt 727.455.0056 or Lonnie@HelgersonFranchiseGroup.com
The above is an excerpt from my book Five Pennies: Ten Rules to Successfully Building a Franchise Mega-Brand and Maximizing System Profits.