backup plans for your franchise


Once your franchise business begins to function seamlessly, you don’t give too much thought to the possibility of things going wrong.

However, the last year has shown us that there can sometimes be situations beyond our control that can affect businesses and their profitability in more ways than one.

What Exactly Can Go Wrong?

Every business has several moving parts, which means many different things can go awry, sometimes, without warning. Here we look at what some of these things are and how to deal with them effectively:

1. Equipment Malfunctions/Fails

Many franchises rely heavily on different types of equipment. If any of the equipment malfunctions or fails, it can slow your business down quickly. For example, if you are in the food business and your oven or dishwasher gets broken, your kitchen will soon find it challenging to plate meals, posing a major problem.

If you have a significant number of customers waiting for their food, that will negatively affect your business. Poor reviews can wreck even the most well established food businesses before you know it. Apart from equipment in a food franchise, the ones that can fail in other franchises include:

  • Large-format printers
  • Sign making machines
  • Dry cleaning equipment
  • Moving trucks an
  • and cleaning equipment
  • Delivery vehicles
  • Water-drying equipment
  • Point-of-Sale (POS) systems
  • Others


2. Shortages in Staffing

Finding experienced, dedicated, high-quality employees is an uphill task in almost every industry. Food businesses struggle with finding the right frontline workers, assistant managers and managers. Other franchise businesses to experience labour shortages, and some of these sectors are:

  • Home services
  • Retail
  • Children’s related businesses
  • Automotive
  • Senior care
  • Others


You Need Backup Plans

Regardless of the business you run and how well established and stable your franchise network is, you need to have some backup plans in place. It’s your best bet to keep your business running at a steady pace at all times. Some things to focus on include:

1. Employee Backup Plans

Most franchisors have hiring systems in place and can help you with staffing, while others may expect you to manage this aspect of your business on your own. In this case:

  • Have some processes in place that will help you recruit employees by looking in under-the-radar areas.
  • Talk to other franchisees within the network (particularly experienced ones). They will have dealt with similar challenges themselves and may have some ideas you can implement.
  • Hire some core staff members – ones who are experienced and skilled enough to represent your business. Once you have these in place, look for extra employees you can bring to the fore when you need them.


2. Business Equipment Backup Plans

Sophisticated modern equipment does not break down as frequently as earlier. However, you still need to have some backup plans in place to ensure your business’ smooth running. Some things to do include;

  • Some franchises include backup equipment costs in the startup costs. In this case, you would still need to find out how the franchisor helps if this problem crops up.
  • Partner with other franchisees and create a plan of action to deal with situations such as these.


3. All Business Systems’ Backup

Most franchisors will have specific backup systems that help safeguard their franchisees’ data. However, you will find yourself in a soup if those backups fail. It’s why you also need to have backup systems of your own in place for things like employee information, payroll, marketing/advertising templates, customer information and more. This backup will give you the peace of mind you need to focus on your business’ daily workings.

It is the best way to keep things on track as it will help you reduce the possibility of losses and ensure that you can function seamlessly to some extent. Never leave anything to chance, and be well prepared with a Plan B for all the moving parts of your franchise business.

If you want any more information on working smarter, contact the experts at The Franchise Institute. You can call us on 1300 855 435 or fill in this contact form, and one of our experts will contact you as soon as possible to answer your questions.

Thanks for reading,
The Franchise Institute Team
1300 855 435

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