It is the organisationally mature networks that are more profitable. With them, it is easier to profit in the network.
Dear Friends of the Franchise 2.0 Ecosystem,
Partners, Entrepreneurs, Investors, Innovators,
Franchise Fans!
We are presenting the complete Franchise Market Research Report, created in partnership with Professor Eryk GĆodziĆski and his research team at the Faculty of Management of Warsaw University of Technology, and with research firm ARC Rynek i Opinia.
In October, at the Franchise 2.0 Conference, we presented the first collected market data and preliminary conclusions. We then submitted the Report to the opinions and comments of Leaders, Managers and Experts in franchising. And here is the full version of the Report, supplemented with statements from people truly engaged in the practice of franchise business. They show how things look for them, what they think and how they design solutions for their networks and their value proposition for franchisees.
I left writing this editorial until the end, because until the last moment I was not sure what I most wanted to highlight from what we managed to prove in the Research. The question of what to emphasise as a conclusion above all, so that transformational value would be created for the industry.
Our Research clearly shows that more mature franchise networks more often achieve profitability â simultaneously at the level of the franchise network and the franchise unit â than those that are still striving for the systematic organisation of their operations.
Build and scale your franchise on the foundation of a mature organisation and management solutions. Then, as a network operator, you will profit more from the franchise business â and so will your franchisees.
Meanwhile, networks lack strategy execution, and franchisees lack openness and readiness for change.
As a Franchise Innovator, I have been developing the Franchise 2.0 Ecosystem for several years, consistently trying to demonstrate two key success factors for growth in the franchise model.
First, scale the business when organisational readiness exists â otherwise scaling in franchising will not succeed. Second, continuously reach for management solutions and Franchise Innovation for your business. Reach for 2.0.
When you scale the business, you need to have a consciously prepared organisation that can handle the challenges of growing scale. You need a systemically and structurally mature company with the capacity for scalability as you move through phases of development and growth.
It is worth knowing that only around 9% of companies grow profitably. This is the paradox of growth. Revenue grows, but profits do not â or you earn less with higher revenues, because organisational complexity emerges.
And if you are a franchise, you must even more so be a system, because franchising is naturally about the system. Franchising is a System.
And we proved it. More mature franchise systems are more often profitable. In our Franchise Market Research we also confirmed this relationship.
In researching the market, we diagnosed a need to improve process maturity at the level of management processes. We saw that only very few networks standardise management know-how.
Networks provide franchisees with operational know-how, but not managerial know-how. Here lies the gap and the opportunity to build competitive advantage for network operators.
Franchising is about People. Lead them.
For networks that are increasing the share of franchise outlets in their business, the challenge of the future will be leading people in the network in their business and equipping them with impactful strategic, organisational, technological and financial solutions.
This is the role of Impact Franchising.
The franchise market exists. The franchise market is dynamic!
In the Research we observed dynamic growth across most franchise networks. Over the last year, 77% of the surveyed companies increased the number of franchise outlets, and 74% increased the number of customers.
Taking care of the professional and financial wellbeing of franchisees will be an important challenge for the industry in the coming years and may provide it with transformational value and help to increase scale.
I see enormous opportunities for the further development of the franchise market, its durability and flourishing, when we move to a higher level of building organisations and align management between franchisor and franchisee.
This is New Franchise Entrepreneurship. There is an enormous space in franchising today for the development of thinking and acting in terms of modern technological entrepreneurship.
I invite you to read the Report and engage in dialogue in the Franchise 2.0 Ecosystem.
To Nowa PrzedsiÄbiorczoĆÄ Franczyzowa. Ogromna jest dziĆ przestrzeĆ in franchising dla rozwoju myĆlenia i dziaĆania w kategoriach nowoczesnej przedsiÄbiorczoĆci technologicznej.
Zapraszam Was do lektury Reportu i zaangaĆŒowania w dialog w Ecosystemie Franchise 2.0.
