A well established Franchisor had in their franchise agreement and
system standards to collect financial statements from every
franchisee every month. The financial statements were coming in
manually via fax and were in various different formats. That made it
very difficult and time consuming for the home office and their support
personnel to analyze the information and provide any feedback.
We were able to solve the problem by customizing a software tool for
their business model. Each franchisee was able to export their data
out of their accounting system and upload it electronically.
The software maps the franchisee data to a standard chart of
accounts and the results were instantly available to the home office
and field support personnel. Now actual financial results and key
performance indicators could be used to provide support and guidance
for franchisees. As a result, the home office and locations were able to
accomplish the following:
Key performance indicators and ratios automatically calculated
allowing visibility into trends from month to month, quarter to
quarter, year to year etc.
Data Visualization dashboard views were incorporated to
proactively monitor and manage the key performance measures.
Monthly and year to date financial performance and productivity
results were compared to budget instantly with ease.
(Before this implementation, budgets were submitted separately
with no easy way to compare actual performance with the budget)
Enabled comparisons with the profit leaders instantly.
Allowed instant comparisons to general industry benchmarks.
Cash flow projections were made simple and meaningful.
Allowed for easy valuation of the business at any time.
Enabled easy data compilation for UFOC Item 19.