Sponsored content by Qvinci.
Franchises are struggling as the U.S. economy plummets more and more what seems like every day.
Inflation is hitting consumers’ bank accounts hard and slowing spending. And if that’s not enough, Bloomberg Economics and many other experts are predicting there’s at least a 75% probability of a recession that might prove to be an even longer haul than anyone is anticipating.
So how can franchise brands of all sizes, from one location to thousands, not only remain financially viable through these volatile economic times, but actually boost profitability and scale their organization?
The answer is simple – Utilize Qvinci’s recession-proofing system to reduce decision-making risk and pave a profitable path forward.
Step #1 – Understand the Past
The first step is that franchise organizations must understand their past by accessing timely and accurate franchise location data with Qvinci’s patented process that automates the collection, consolidation, and mapping of such data to a Standard Chart of Accounts.
This is accomplished with the ‘click’ of a button and provides easily understood, actionable financial insights across an entire organization. It also eliminates the spreadsheet chaos that takes days – if not weeks – to complete and oftentimes results in untimely and unreliable reporting.
“From a Franchisor standpoint, Qvinci has provided us the ability to see
measured performance and allows us to dive into each FOs metrics
and help them drive their profitability in a positive direction.”
— Wanda Hoegren, Business Operations Manager
Homewatch CareGivers
Step #2 – Grade the Present
Step 2 for successfully outmaneuvering inflationary or recessionary periods is to grade each individual location’s present financial performance.
This is best accomplished with Qvinci’s acclaimed Advisory Portal (a franchise wellness dashboard), where corporate and franchise owners can gain an immediate understanding of each location’s performance by drilling down through increasingly granular levels of data with the ‘click’ of a mouse.
The Advisory Portal empowers corporate to monitor current location-specific performance, so corporate knows when to reach out to franchise owners to advise them on problem areas that need remedial action.
When corporate can clearly show franchise owners how to correct course and avoid an oncoming crisis, as well as how to increase revenue and profitability, the corporate/franchise owner dynamic evolves into a relationship of trust, collaboration, and cooperation.
Also in step 2, corporate and franchise owners can utilize the KPI Scorecard to get an ultra-transparent, color-coded view of whether a specific location’s financial trending is favorable (GREEN) or unfavorable (RED) and compare its key performance indicators with those of the brand’s highest or lowest earners. They’ll see exactly what’s working and what’s not so franchise owners can make impactful decisions to change course.
“Qvinci gives us the data we need to benchmark against the top studios,
which shows that the lower performing studios could be doing better.”
— Tim Tanguay, Chief Financial Officer (former)
Orange Theory Fitness
Step #3 – Forecast the Future
The third step of Qvinci’s recession-proofing system for franchise organizations is to forecast the future.
Starting with the KPI Trending and Forecasting tool, corporate can accurately show each franchise owner where specific locations will most likely be in 90, 180, 270, and 365 days if they stay on the same track and keep doing what they’ve been doing.
Then corporate can go for a data-rich location deep dive with Qvinci’s powerful What If – Cashflow and Financial Forecast Modelling tool, which can be utilized to greatly reduce risk by creating a virtually unlimited number of likely future realities based upon past performance, but with the addition of course-correction decisions factored in that corporate and each franchise owner develop together.
With Qvinci, franchise organizations of all sizes can outmaneuver even the worst inflationary and recessionary times by easily understanding their past, grading their present, and forecasting their future.
Want to learn more about how Qvinci can help recession-proof your franchise?