Facts, not Fiction, Lead to Franchise Success

The following is an article submitted by Guest Author, Katryn Harris. Katryn is the CEO of Open Box, a company focused on helping franchisors use technology to build their franchises. She brings her background in management, business strategy and communication as well as her team of technical experts to work with franchisors, ensuring that their technology fits their business strategy and moves their franchises forward. Be sure to check out Katryn’s blog.

Feedback Loops and Franchise Success
By Katryn Harris

A few days ago, I was talking with Greg Nathan from the Franchise Relationships Institute about his software product that helps franchisors select franchisees who are the most likely to succeed.

In brief, the Franchise Relationship Institute does this by benchmarking characteristics & traits of past successful franchisees and then providing a system that compares new applicants with those traits and characteristics.

Greg is a trained psychologist and works strong in the scientific tradition; hypothesize, measure, analyze and then compare results with hypotheses. One of his current projects is the validation of the exact extent to which is product is successful in predicting new franchisee success and, not surprisingly, his results will be fact based & very precise.

Listening to Greg talk about the validation project, I was struck again by how vital these feedback loops are to franchise growth.

Successful franchises implement the best programs and systems they can come up with, but then they measure, analyze and adjust based on the numbers and results (rather than what they ‘think’ is happening). And the faster they can complete this cycle (and then start it up again), the more likely they are to be successful in the long term.

From 1-800-GOT-JUNK?’s Net Promoter measurement tool to calculation tools for attrition rates to sales performance indicators, business growth is fueled by knowing exactly what is actually happen so the best actions can be taken. One of our customers ties client satisfaction records into payroll bonuses for their employees, which is a great motivator to get everyone in the company on board in trying their hardest to keep the clients happy – you can imagine what that has done for their referral and return customer rates.

What are your best scientific tools to create feedback loops and do more of what is working & change what isn’t?


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About Paul Segreto

Entrepreneur, Franchising & Small Business Professional, Top 100 Champion Small Business Influencer Awards 2014 & 2015, Popular Blogger & Podcaster
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5 Responses to Facts, not Fiction, Lead to Franchise Success

  1. Pingback: Selling From Your Heart…a Sales Approach for FranchiseProfessionals | gOOd SeLL MaRT

  2. Greg Nathan says:

    Thanks for the mention of my research and the Nathan Profiler. We prefer to think of the word franchise as a verb, not a noun (i.e. it is something you do, not something you sell). In this sense franchisors are entering an active relationship with their franchisees when they recruit them. So it makes sense if franchisors have the tools to consider whether their prospective franchisees are suitable for the business as well as identifying the best ways to support and coach these people for future success. It is our experience that the more care a franchisor puts into the selection and induction of their franchisees, the more likely these people are to ramp up quickly for success.

  3. Joel Libava says:

    Katryn,
    Thank you for this information. Another guy you should check out, and he’s been doing this for many years, is Craig Slavin. His “Navigator” seems to be the industry standard for profiling, and dozens of franchisors use it.

    The Franchise King®
    Joel Libava

    • Katryn says:

      Thanks Joel – great resource.

      I’m all in favour of any tools that encourage validation of theories and increase the feedback loops. It’s so easy to think we know what is working, but often very enlightening to see what the ‘numbers’ actually say.

      I find it interesting, too, that the industry standard for the same basic task (in this case franchisee candidate profiling) can be a different product depending on the continent (Greg’s Nathan Profiler is the leading franchisee selection tool in Australia vs. the Navigator in the US), and that both are used by some very big franchisors.

      The internet really is becoming more and more critical in reducing the knowledge gaps related to geography. My dream is a site that showcases only the best of breed from around the world in franchise tools and resources, but it would really only work if it was a truly independent resource (and probably with no advertising etc, which makes the financial model tricky). Let me know if you have any suggestions on that 🙂

      Best,
      Katryn

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