Global Franchise 10.3

In every sector, top-tier franchisors recognise that while growth is good, sustainability is better – and that sustainability starts with a deep understanding of performance at unit level OPERATION: EXCELLENCE RAY TITUS CEO, United Franchise Group “There’s a reason they get 94% and we get 6%.We’re not a 50% partner, and we’re not going to do half the work!” As CEO of United Franchise Group – currently comprising 11 different brands, from fast-casual dining to business brokerage – Ray Titus knows more than most about what healthy systems look like, and how to keep them that way, regardless of the scale of operations. “You have to have your finger on the pulse of the AUVs,” he says. “How do we increase that number? What are the things we can do to help with that? And a lot of times, that means taking the busywork away, so each franchisee can focus on growing their business.We have coaches who work with them on revenue and on profitability, finding ways to move costs in the right direction and make sure the top line is where it needs to be. “But we don’t ever set the goals – we make their goals our goals, and we know that what makes one person happy won’t be what works for someone else.” ow do you measure the success of your franchise? The obvious temptation here is to go straight to the headline figures: number of deals done, new territories established and that all- important bottom line. Of course, those are metrics that matter in every business context – but they only give part of the story. If, when you are looking at the highest- performing franchises, all you are seeing is system-level growth, then you are missing a crucial aspect of the model. Franchising creates unique commercial ecosystems, within which the success of each participant – franchisees and franchisor alike – both plays into and depends on the success of every other. A poor manager can be put on performance review; sanctioned; ultimately, let go. A franchisee whose business is not achieving its full potential throws the whole premise of the system into question. That is everyone’s concern. And a franchisor who fails to understand this has more to worry about than how fast the brand is growing. Ultimately, operational excellence lives at unit level; and so, to understand what this looks like in practice, we spoke to three outstanding leaders with invaluable lived experience of building, supporting and scaling franchise systems across the sector. Their insights shine a light on the decisions and actions of the strongest franchisors – revealing exactly what it is they do differently… and why those choices make such a difference. H “There’s a reason they get 94% and we get 6%.We’re not a 50% partner, and we’re not going to do half the work!” - RayTitus 40 GLOBAL FRANCHISE Issue 10.3