How can we make Franchise/Royalty auditing more attractive to franchisees?

Let’s face it. If you have come to the decision to either audit in-house or appoint external auditors to visit your franchisee or franchisee network, it is usually for a reason. Unless of course, an annual, or periodic or end of term audit is programmed into the franchisees agreement and explained in clear, concise terms during the franchise recruitment process. But how can it be a benefit to the franchisee? Most will see it as an intrusion to their business and a 1984 approach to ‘watching’ how you are doing.

The benefit to the franchisor is clear; quite apart from identifying undeclared or missing sales from which royalty revenue can be derived, but also to seek out trends where the franchisee or network as a whole are going wrong plus of course making the network feel as if you are watching them. For the franchisee it needs to be seen to be ‘support’ rather than ‘watching’. Will there be a material benefit to them for actively and voluntarily participating?

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Tags: franchisor