Business franchises are a popular way of extending your brand. You sell your business name and model to a third party and get a revenue stream from your franchisees. So you not only get people to expand your local business, but also keep earning off of their profits. What’s not to like?
But.. there’s always a but. The tricky part of franchising your repair business, which you might not see coming, is franchise management. You need to actively manage all of your business franchises and most people will tell you to buy a franchise management software. Don’t worry because we have a repair shop software that does it all. Let’s show you how.
Business Franchises Fee
Once you authorize some franchisees to run their repair shops with your business name, you need to charge them with a franchise fee. This can be a monthly, quarterly or yearly basis fee that your franchisees pay you for using your brand.
Our repair shop software has a multi-store management setup that allows you to add the details of this fee for your business franchises. Do you want to charge a certain percentage on the total sales, net profit, or received payments of your business franchises? Set the calculation criteria for each according to your preferences.
After the initial setup, you’ll be able to keep a track of this franchise fee from the multi-store report. You can select a specific time period in the search filter and view the franchise fee against each branch of your store.
We also have a dedicated report to show you the sales breakdown of each store. Multi-store sales report summarizes everything that goes on at your business franchises. You get to see total as well as category wise sales earned from repairs, products, and trade-ins. One report that cover them all.
Inventory Management of Business Franchises
The next important thing for franchise management is inventory. As the main store owner, you must keep a check on the inventory of all your business franchises. You should be able to see the low stock on each franchise and then supply it to them.
You can order abundant stock on your main store or warehouse and then transfer it to your business franchises according to their need. And here’s the interesting bit: you can earn a little profit out of this (more on that later).
You can use the low stock report of each store to view which items are running short at your business franchises. Then go to transfer inventory module on your main store settings and create transfer orders for the low stock of each franchise.
Remember what we said about earning profit out of inventory transfers to your business franchises? Well, here’s how you can do that.
With the franchise management and inter-company invoicing feature of RepairDesk Enterprise version, you can now configure profits on your inventory transfers. You will setup percentage or plain amount profit margins for each product category of your main store’s inventory. Once it’s done, that profit will be added to the cost price of those products whenever they are added to any transfer orders.
We have also created a blend of transfer orders and low stock reports in our inventory transfer module. This will allow you to populate transfer orders directly from the low stock reports of each store. This way you can create instant transfer orders from your main store inventory settings. Sounds cool, right?
Stay tuned for more!
We just gave you a little taste of how you can manage your business franchises with our repair shop software. There’s more to it. Our advanced franchise management module is on its way to RepairDesk Enterprise Plan and it will be big for all franchisors. So stay tuned for this upcoming update and we’ll be back with more features and business tips for your repair business.