For Franchisors & Franchisees

Fran Metrics Blog

 

Scorecards: Actionable Data to Inform Ongoing Business Decisions with Confidence

From inception, Fran Metrics has identified and encouraged the importance of utilizing Franchise Scorecards. Our platform is designed to provide timely, relevant, actionable data that benefits your entire organization and we are committed to continuing this practice so that you have more time to commit to wealth generation, franchisee support, and overall business growth.

Scorecards are designed to collect, compile and benchmark the most critical and actionable numbers (KPIs) that you can track on a per-unit basis. We recommend keeping the number of KPIs to less than 20. You can have daily, weekly, and/or monthly scorecards, depending on how you prefer to collect & automate your data collection process. Utilizing Operational Profit calculations, this is one step past EBITDA and will give an apples-to-apples comparison, leaving out discretionary and other costs not associated with the operation like interest or depreciation.

In many cases, a franchisee-delivered profit and loss statement can be useless for both franchisees and franchisors because it doesn’t include the metrics evaluated by a Scorecard!

Benefits of a Scorecard

Figures reported are actionable!

Is it more beneficial to see that you paid the same rent last month as you paid the month before or that the advertising budget went up 5% at the same time that sales increased by 10%? Your scorecard can show you this data to confidently inform such correlations

Differentiation between vital and non vital data!

Has leading indicators, not lagging indicators!

Sales were down last month! It took you until the 15th to look at your P&L, and now the issue could be 45 days old!

You could be effortlessly tracking specific numbers sooner and comparing figures that may have been contributing to reduced sales, such as customer satisfaction scores.

Includes relevant unit level metrics that a P&L may not provide (or data that may be misleading)!

Most businesses have every incentive to make that bottom line as LOW as possible for tax purposes, but this is not a true assessment of unit level performance.

Franchisees may have major repairs or other one-time expenses showing, not related to their actual

Realize the benefits of a Franchise Scorecard

Quickly and Easily navigate between views that show KPIs of:

  • The Franchise as a whole!
  • Smaller, customized groups such as separated by state or population size.
  • A Single Unit- See an individual unit’s performance and financial highlights.
Utilize Scorecards to empower your Franchise today

Fran Metrics’ Scorecards are the solution you’ve been looking for to provide support, reward performance, and identify opportunities for growth within your organization. For more information, schedule a demo today!

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