Global Franchise 9.3

Schmidt’s strategy prioritizes the unique needs of each community it serves. Instead of imposing a uniform approach, the brand empowers franchisees to design showrooms tailored to local tastes. Each showroom serves as a source of inspiration, showcasing Schmidt’s versatile and customizable products in relatable settings. Advanced tools like 3D rendering and virtual reality bring customer ideas to life, allowing them to envision personalized solutions for their homes. However, the true strength lies in the franchisees themselves. Deeply rooted in their neighborhoods, they provide insights that ensure each showroom feels personal and relevant. This connection with the local community is what sets Schmidt apart, making every customer experience authentic and meaningful. Schmidt’s global growth is built on three core pillars: identity, adaptability, and support. First and foremost, a strong brand identity anchors the business.With more than 60 years of experience in the furniture industry, Schmidt represents quality, expertise, and trust – values that resonate in every market. Second, local adaptability ensures relevance. Franchisees have the freedom to craft marketing strategies that reflect their community’s tastes while staying aligned with Schmidt’s overarching vision. This balance allows the brand to connect deeply with diverse audiences without compromising its essence. Finally, empowering support underpins it all. From state-of-the- art tools to comprehensive training programs, Schmidt equips its franchisees with the resources they need to innovate, thrive, and deliver exceptional customer experiences. This winning combination has enabled Schmidt to expand its product offerings beyond kitchens to include bedrooms, bathrooms, and home offices, catering to the evolving lifestyles of modern consumers. Schmidt’s ability to stay personal while growing big is its hallmark. While customers appreciate the consistent quality of products, it’s the local franchisees who foster trust and build lasting relationships. By blending global standards with local expertise, Schmidt ensures its connections feel genuine in every market it enters. The Schmidt story serves as a blueprint for sustainable, thoughtful expansion. Success lies in balancing global consistency with local flexibility. By staying true to its brand values and empowering its franchisees, Schmidt has proven that growth doesn’t have to come at the expense of identity. For businesses seeking to expand, Schmidt offers a vital lesson: growing big doesn’t mean losing the personal touch. It’s a masterclass in how to scale with authenticity. GLOBAL AMBITIONWITH A LOCAL TOUCH C O MM U N I T Y T I E S Measuring franchise key performance indicators (KPIs) to establish franchisee performance is key for brand consistency, ensuring franchisee success and driving overall growth. But which KPIs should franchises measure, andwhy do theymatter? The franchising business model differs from regular business models in many respects. Franchising seeks to constantly strike the perfect balance between standardization and franchisee independence, and keeping tabs on KPIs is essential for maintaining this balance, helping to track performance, spot trends and identify areas for improvement. Let’s delve into some of the KPIs that top franchise brands measure. They may seem like a high number, but each one plays a special role in the franchise ecosystem and none should be underestimated. Financial measurements First come the financial KPIs. These should measure revenue growth, reflect the overall expansion of the franchise network and indicate whether the brand is successfully scaling. Monitoring profit margins is essential to keeping tabs on franchisees' financial health, ensuring they remain profitable and sustainable within the system. And royalty revenues serve as a direct measure of system performance, tied as they are to franchisee success. Operational sucess In terms of operational KPIs, compliance scores evaluate howwell franchisees adhere to brand standards and operational protocols, ensuring consistency in customer experience, while training completion rates measure the effectiveness of the onboarding processes for franchisees and their teams, highlighting areas where additional support may be needed. Average transaction values provide insights into operational efficiency, pricing strategies, and customer spending habits. Marketing effectiveness Next come the all-important marketing KPIs. Customer acquisition cost (CAC) measures the expense involved in acquiring new customers, helping franchisors and franchisees evaluate the Success by numbers: key performance indicators Behind every successful franchise brand is a carefully curated set of KPIs transforming raw data into strategic success, says Dani Pelever , founder and CEO of Franchise Fame. With 800 showrooms across 30 countries, U.K. Country Manager Jean Michel Peragine explains how Schmidt has scaled without compromising identity, combining global consistency with local adaptability to deliver what customers want. 52 GLOBAL FRANCHISE Issue 9.3