Case Study #1: Facilities Management Franchise Model
Overview
A leading facilities management company sought to enhance its service delivery for small and medium-sized clients while maintaining profitability. The company specialises in a wide range of building maintenance services, servicing large commercial clients as well as smaller accounts that delivered higher margins.
The Challenge
High client turnover among smaller accounts was impacting the company’s profitability. The wholesale service model, designed for large contracts, did not align with the personalised attention smaller clients needed. A tailored approach was required to retain these clients and build lasting relationships without increasing internal resource demands.
The Solution
The company adopted a franchise model to better serve its smaller clients. This model empowered franchisees—owner-operators—to deliver the detailed account management and personalised service that smaller clients expected. Franchisees could build relationships directly with clients, ensuring a more attentive and responsive service.
The Benefit
Transitioning to a franchise model for smaller accounts resulted in improved client retention and reduced operational costs. Franchisees managed day-to-day operations independently, reducing the company’s compliance and supervisory workload while ensuring higher levels of customer satisfaction.
The Result
Within the first 12 months of implementing the franchise model, the company onboarded 10 franchisees, significantly improving client retention and service delivery.
Testimonial
"Tereza has a strong, commercial understanding of franchising and developing robust, sustainable franchise systems and teams. Building a solid operational framework to support growth and performance for the business was a key focus, as was the franchisee recruitment and onboarding process, which was successfully implemented with Tereza’s support. I have no hesitation in recommending Tereza."
– J Fletcher
Case Study #2: Automotive Performance Franchising Success
Overview
An innovative automotive business wanted to launch a performance-enhancing product into an established market. The service, which required qualified mechanics for delivery, posed challenges for rapid expansion due to the cost of establishing new business units and staffing.
The Challenge
The client aimed for a fast national rollout but faced financial and operational barriers. Establishing new locations and hiring mechanics proved cost-prohibitive, and the service’s technical nature required experienced professionals to deliver it.
The Solution
A franchise model was developed, targeting established automotive repair businesses as franchisees. This approach leveraged the existing infrastructure and customer databases of these businesses. Franchisees integrated the performance-enhancing product as a bolt-on service, acting as motivated sales and delivery partners.
The Benefit
Franchisees gained a lucrative additional revenue stream without needing major capital investment or expansion. Strategic marketing materials in customer-facing areas, such as reception, quickly boosted brand awareness. The franchisor benefited from accelerated market penetration with minimal upfront costs.
The Result
The franchise model proved highly effective, with 11 franchisees signed in the first 12 months. Rapid sales growth required the head office to expand resources to meet increasing product demand.
Testimonial
_"We wanted to launch our business across New Zealand and Australia and knew franchising was the right growth model, but we didn’t know how all the pieces would fit into the big picture.
Tereza was instrumental from day one, assembling our ideas and objectives into a cohesive franchise framework. Her advice on structuring all areas of the business ensured the franchises were both marketable and commercially viable.
As a start-up, Tereza really listened to what we wanted to achieve and provided valuable guidance. The comprehensive operating system she helped us develop has been pivotal to our success. Her down-to-earth approach and deep knowledge made the entire process smooth and effective. With 11 franchises sold in our first year, we are well on track."_
– J Peters