Fitness franchise chain Contours is attending to franchisee financial training and boosting revenue streams as part of a long term strategy for growth, profitability and brand protection, says the company’s Managing Director, Justin Wilshaw.
Wilshaw has just returned from a five day national roadshow outlining corporate policy for 2009. And key in the first six months are financial performance, how brand equity stacks up and improving the value proposition for members.
Marketing is central to this and in the past franchisees have acted co-operatively state-wide. Now two new agencies will handle the account nationally and a new marketing manager will deliver marketing to franchisees in the field. Although franchisees will now pay higher marketing fees these will be offset by fewer costs required on a local area marketing level.
The company’s support of franchisees has seen a change from state visit support to state based business coaching and a focus on enabling franchisees not just to grow but to control their business with advice on cash flow and budgets. Franchise development managers will offer targeted advice to franchisees and in May all franchisees will be undertake an internal course on cashflow training.
Franchisees will also be benchmarked.
“As a brand evolves its system evolves and at different stages of evolution the needs of the network change. What we’re providing is right for a four year old brand," said Wilshaw.
“We are looking to supplement revenue for franchisees,” he added. So increasing value to Contours' membership by offering programs and products associated with health and nutrition is long term, he explained. “We’re not just focusing on our members doing the workout and off they go, with health, nutrition and vitality left to them. We’re focused on coming up with a solution and this will be an ongoing process,” he said.
This article appears courtesy of 5 Minute Franchising Newsletter