The Problem with Average Unit Volume Most franchise systems tout their “average unit volume” (AUV)—total system sales divided by the number of units operating for at least one year. But here’s what that number doesn’t tell you: in a system with 100 locations, 20 top performers generating $2M each can make the AUV look impressive…
In the dynamic world of franchising, the journey from inception to legacy is a multifaceted saga of growth, resilience, and visionary leadership. This article delves into the five critical stages of a franchisor’s journey – Survive, Sustain, Scale, Success, and Steward. Each stage marks a significant milestone in the evolution of a franchising business, representing…
Often, the conversations that FBC’s have with franchisees are mostly reactive based on reviewing historical data on the P&L that shows what did not happen in the previous accounting period. I refer to these numbers on the P&L as “lagging indicators”. These conversations are difficult and often strain the relationship between the FBC and franchisee,…