Franchise Business Performance Cycle (FBPC)

Introduction

The aim of the Franchise Business Performance Cycle (FBPC) is to “drive greater business performance to achieve a best-in-class Franchise Network”. To achieve this aim Fonterra Brands New Zealand Limited (FBNZ) and the Franchisee need to have mutually high expectations of each other, establish then measure these expectations which will improve business performance. This will be achieved by benchmarking and sharing these standards.

Franchise Business Performance Cycle Visits

The function of this FBPC and the Business Consultant is to increase the business performance of each individual Franchisee.

It is the Business Consultant’s responsibility to organise and plan the cycle meetings. A formal agenda is sent ahead of each visit, and a recap letter is sent within 14 days of the visit. The visit content depends on the cycle and FBNZ’s business priorities, plus input from the Franchisee. It is the Business Consultant’s responsibility to facilitate the meetings and to provide necessary input and documentation.

The Franchisee should come to the meetings prepared with the requested information as per the agenda (in particular financial information for analysis and discussion). The Franchisee should also contribute at these meetings with information such as goals, insights, business performance and business improvement opportunities.

Where possible, the Business Meetings will be conducted in the Franchisee’s territory. The meetings may be held at the FBNZ offices or Farm Source sites nationwide. Where meetings are not held at the FBNZ offices the venue should allow the Franchisee to focus entirely on the meeting without interruption. As the meeting may involve robust discussion it is important that the venue is appropriate.

The time frame allotted for the Business Meetings is variable. The important consideration is the Franchisee and his/her business needs. The Franchisee should come away from the Meeting feeling that ample time was allotted to meaningful, open discussion with FBNZ.

The meeting agenda includes, but is not limited to, the below:

Health and Safety
Business wellbeing – including:
- Current business performance trend
- Cage credits
- P&L review
- Business Wellbeing Plan
Franchise Business Performance Matrix
Franchisee/FBNZ Projects Update
Review of last visits’ recap

Franchise Business Performance Cycle – Visit Intentions

There are four visits per FBPC, which can take 12-18 months to complete:

Systems Help Visit
Mid Cycle Review
Operations Review
The Business Meeting

The intention of the Systems Help Visit is to focus on the systems in the Franchisee’s business and provide assistance in line with the Franchisee’s goals and FBNZ’s focuses. In particular this includes, documenting the Business Wellbeing Plan with goals and objectives for the coming financial year.

The intention of the Mid Cycle Review is to assess the Franchisee’s progress on their goals and the systems addressed during the Systems Help Visit and provide additional assistance where needed.

The Operations Review is intended as a detailed assessment of the operation of the Franchisee’s business. A key focus for the Operations Review will be to conduct the FBNZ Truck Audit and to discuss the Franchisee’s current performance as per the FBPM.

The Business Meeting is intended to provide a vehicle for FBNZ and the Franchisee to formally discuss the performance of the Franchisee:

All Franchisees will receive a Business Meeting for a period not to exceed 18 months. It is intended that most Franchisees will receive a Business Meeting every 12 months
The National Franchise Manager or General Manager for Foodservice and Route, may attend and participate in the Business Meeting
This discussion should be open, honest and candid. The meeting should recap the history in each of the criteria for the period since the last meeting and outline the present and future actions needed
The meeting process needs to be forward looking in direction while clearly communicating the results of the current period

The Business Meeting should accomplish these objectives:

Clearly let the Franchisee know where he/she stands for meeting standards and whether he/she is Eligible for Renewal of their franchise at the end of their term and what needs to be done to achieve or maintain this status
Clearly let the Franchisee know whether he/she is eligible (if appropriate) for Growth of their territory or an additional franchise territory
Enhance communication between the Franchisee and FBNZ and clarify the FBNZ and Franchisee direction

Disagreement

Should the Franchisee disagree with the outcome of the Business Meeting and their eligibility for Renewal rating, and/or the rating in any of the six criteria within the meeting, the Franchisee should put their concerns in writing to the Business Consultant.

Franchise Business Performance Matrix (FBPM)

The Franchise Business Performance Matrix (FBPM) is a key document that supports the FBPC. The FBPM contains detailed metrics that will be developed over time for each of the standards and criteria.

The purpose of the FBPM is to deliver clarity on FBNZ’s expectations, by providing information and transparency on what it means to meet/does not meet/exceed the relevant criteria.

The FBPM is a continuously improving and evolving document and a central component of the FBPC which is formally measured at the Business Meeting.

The FBPM is measured against six criteria:

Sales / Marketing / Pricing and Distribution
Financial Capability and Business Planning
Reinvestment
Operational Standards
People, Health & Safety
Franchisee Involvement, Contribution and Effectiveness