What Franchise - Issue 21.2

12 WHAT FRANCHISE Issue 21.2 FINANCIAL CONTROL Understanding the financial detail of their business is the most critical skill a franchisee should be educated in. In the early phases of a business, it’s vital to ensure enough revenue is generated to survive, grow, and keep start-up lending under control. As a business grows, the emphasis on cash becomes critical. Cash may come in at greater volume, but it also gets used more quickly. A business can be very profitable and still fail due to poor cash control. As revenue increases, even small improvements in financial management can significantly impact profitability. How competent is a franchisee’s budgeting? Do they understand their gross profit margins and the drivers behind them? What’s their cash conversion timeline? Are these elements being monitored on a daily or weekly basis? Are there monthly management accounts in place that provide the information needed to intervene and mitigate risk? Before launching another franchise territory, ask yourself: can every existing franchisee clearly evidence, “Where am I making money, where am I losing it, and what do I do next?” and do you provide the processes to enable that? If the answer is no, growth becomes a risk rather than a strategy. OPERATIONAL CONTROL If financial control is the vehicle, operational control is the driver. Financial performance is the outcome of the standard of work across many different functions within a business. Operational control is the understanding, contribution, intervention, and mitigation across each of those functions. KPIs for each function (which correlate to the budget and are adjusted in-year to reflect over- or under-performance) provide the ‘window’ into the financial future of the franchise and wider network. Awide range of data covering quality, customers, sales, staffing, and regulatory performance is also required – without it, how does a franchise alter its future? Do franchisees have standard, network-wide KPIs? Do they knowwhere to find them, how to influence them, and what impact any change will have? For franchisors, these numbers are essential for identifying trends and providing relevant, timely support. ENGINEER ACCOUNTABILITY Saying you support franchisees is easy. Proving it is harder. A good franchisor should be able to pinpoint the tools, training, support and feedback given to every franchisee for any issue they may encounter. This creates clear accountability for the franchisor. The next level is building systems where franchisees are accountable for their operational control through regular reporting, review and support. Documented feedback on key indicators with agreed action dates ensures support is prioritised where it’s needed most. The ultimate level is reached when the franchisee has already used the tools and training provided to solve the issue themselves. With continued reporting and structured reviews, this is where accountability truly matures. LEADERSHIP AND CULTURE Many businesses measure culture through familiar markers such as retention, incentives and perks. These only tell part of the story. The other side of the see-saw is performance, development, career aspiration, accountability and effort. That balance matters. It motivates teams to push to new levels. Work shouldn’t be easy; it should be challenging. And that challenge should be part of the fun. Perks should sit alongside that mindset, not replace it. Ask: Is there a clear vision that both franchisor and franchisees aspire to? How does the franchisor know that front-line teams understand it and are working towards it? Support franchisees with the tools to strengthen their own culture and measure its impact regularly. ounded in 1999 with a handful of holiday camps, Premier Education has grown into the UK’s largest provider of wraparound care, holiday clubs, PE and school sport and extra-curricular provision. At the British Franchise Awards 2025, the franchise was named Silver winner for Franchisor of theYear (Established) and awarded the BFA Leadership & Culture Award. For CEODavid Batch, the recognition reinforces a belief shaped over 25 years in franchising: a franchise is only as strong as the system behind it, and that system only works if franchisees can truly use it. Here, David shares the thinking, lessons and hard-won experience behind that journey. F David Batch, CEO of Premier Education, on how to build a serious franchise system that actually works David Batch SIX IDE AS.