A major strength of franchising is that it’s based on tried and true business models. Trouble is,in this fast-changing business environment, what’s tried and true one year may be tired or irrelevant the next.Not surprisingly, one out of three franchisors is concerned about the viability of their business model.
Does the solution lie in developing a better business plan? Surprisingly, the answer is no. Most franchisors have been taught that the tool for developing strategy in their businesses is a business plan. It isn't. Without first developing a relevant business model, putting together a business plan has been described as setting your business adrift. Without a business model, no amount of written visions, missions, goals and action plans will get your franchise to where you want it to go.
So what is the secret to an effective business strategy for franchisors? The Business Model Canvas proposed by the authors of the book Business Model Generation is a surprisingly simple but powerful tool for systematically understanding, designing and implementing new business models—or analysing and revitalising old ones. All on one page.
But franchising is different from other business models. So Robin La Pere of No Ordinary Franchise Consultants came up with an exclusive Business Model Canvas for Franchisors that we believe is the first of its kind in the world because it
1. Acknowledges the uniqueness and complexity of franchising
2. Reflects the unique needs and challenges of franchisors, including the fact that franchisors have TWO customers—their franchisees, and their franchisees' customers
3. Builds on the underlying characteristics of all best-practice franchises - strategic health and strong organisational culture
This Slideshare presentation The World's First Business Model Canvas for Franchisors is an abbreviated version of No Ordinary Franchise Consultants' ebook of the same title, which can be downloaded free from www.noordinary.co.nz.