Top Issues Affecting Home Care Franchisors

As a franchisor, you invested heavily to get your business off the ground. From building a successful model agency, to developing your FDD, a lot of blood, sweat, and tears went into bringing your dream to reality.

After all your hard work and investment, it finally sign your first few franchisees. You feel on top of the world, 3 to 5 new units a year, you're on your way...except...they are taking too long to ramp up and royalties fall short of expectations.

As great as the franchising can be. it faces some common key issues:

Lack of industry knowledge coupled with legal restrictions

Your initial training is a great crash course, but because you need to maintain arm’s length separation when it comes to a franchisee’s hiring practices (mainly to avoid a joint employer claim), you need to tread carefully when your support team advises on questions of who to hire or how to calculate wages or commissions.

Industry learning curve

Let's face it, many of your franchisees weren't successful home care agency owners and know little about what it takes to make it long term. In fact, many come from industries that are far removed from the home care space or their previous careers didn’t require the skills required to understand their new venture into business ownership.

They don't understand their territory (and either does your support team)

When looking at a territory map during the sales process, it is exciting and your brand developer has done a great job selling the concept, but has anyone helped the franchisee understand how to prospect? Recruit? Identify and create a viable marketing or recruiting plan?

A solid territory analysis and strategic marketing / business development plan can generate signed clients in as little as 30 days (industry average being 90 to 120 for top performers, 120 – 270 for others)

Franchisees feel neglected

When someone buys a franchise, they do so because they expect to have mentorship, guidance, and some semblance of leadership. Many franchisors go into this business model with the intention of providing great value to their franchisees, but good intentions don’t always equate into great results. There are many reasons for this, ranging from simple lack of resources or imagination to legal restrictions or improperly managed expectations, whichever the case, it can spell dissatisfaction and system stagnation.

Sometimes, your franchisees want more guidance than you are able to provide and it leaves them feeling resentful. This might not be an issue when you have enough units, but it can be devastating to a smaller system.

Your future success is dependent on validation

Validation is the lifeblood of franchise growth. If your franchisees feel supported and are making money, they will have a higher likelihood of responding to prospective new franchisees and of having a positive experience to speak about.

You need success

New franchisors are under a bigger strain than a more established brand. They are in the early stages and have a bigger burn rate when it comes to providing support for their franchisees. There is also the added burden of needing at least 10 “Rockstar” franchisees to validate your methods and give you those great validations that give you the proof of concept and allow for steady and consistent growth over the next 10 or more years.

Why work with us?

Briones Consulting Group understands that experience is important, but the right kind of experience is priceless. Our staff understands the home care industry is multi-dimensional and the world of franchising is complex, profitable, and fulfilling. With over 20 years industry experience, 6 of which working directly with an emerging home care brand, we provide the unique experience and custom growth solutions for your system’s franchisees.

Schedule a call and let's talk how we can work together to help your locations increase overall system revenue by helping improve your franchisee performance outcomes.

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