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For franchisors, there are no slow months. Most brands sustain an ongoing development effort throughout the year, and even those that aren&rsquo;t actively seeking new franchisees must work constantly to support their existing owners. Still, the end of the year is a particularly busy time for franchisors, and <a href="https://www.smbfranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-smb-franchise-advisors-is-helping-its-clients-end-the-year-strong-2708348" target="_blank" rel="nofollow" target="_blank">SMB Franchise Advisors</a> works closely with its clients &mdash; franchise brands of a variety of sizes from a variety of segments &mdash; to make sure they are in the best position to start the new year.

For emerging brands, which make up the majority of SMB&rsquo;s clients, Beagelman urges a renewed focus on &ldquo;SNOs&rdquo; (signed-but-not-open franchise locations), so that they are set up to open in the new year.

&ldquo;It&rsquo;s important to take the time to make sure all of your SNOs are in good shape,&rdquo; he said. &ldquo;You want to make sure that the location is picked out, that the lease is signed and that all the little things that need to get done before they open are getting done. It&rsquo;s one thing to sell a franchise, but if you are counting on that franchise being part of your system in the new year, you need to make sure they are prepared to open.&rdquo;

SNOs can be a challenge for emerging brands, which Beagelman says are often too tied up in the operations of their existing systems to focus on future owners.

&ldquo;It&rsquo;s one of the biggest challenges emerging franchisors face,&rdquo; he said. &ldquo;Many of them are still running their business &mdash; the corporate operation. It&rsquo;s hard to make that mental switch and step back to focus on the franchise company.&rdquo;

Beagelman says SMB helps emerging franchisors make that recalibration, guiding their focus and resources to support manageable growth.

&ldquo;A new franchisor may know everything there is to know about their business, and so that&rsquo;s where they feel comfortable, but the fact is that they are not just running their business anymore, they are running a franchise, so we help them make that transition. We show them what areas they need to focus on and what they can do to make their franchisees successful. If you look at any emerging franchisor, the ones who have managed to step back and run the franchise rather than the day-to-day business are the ones who are most successful.&rdquo;

For established franchisors, Beagelman recommends taking stock of unit economics and doing whatever possible to make sure franchisees are doing well.

&ldquo;It&rsquo;s all about unit economics,&rdquo; he said. &ldquo;How are the stores doing? Are sales up or down compared to last year? Are the operations producing the margins you want? These are the questions franchisors need to be asking as they enter the new year.&rdquo;

According to Dawn Abbamondi, Director of Marketing and Brand Development for SMB, the end of the year also offers a number of useful benchmarks for franchise brands to measure the health of their systems against industry standards as well as their own goals.

&ldquo;All of our clients have development goals &mdash; a number of units of franchisees they want to bring on throughout the year,&rdquo; she said. &ldquo;Now, we&rsquo;ll reevaluate that number throughout the year. If a franchisor starts with five new units as a goal and they hit four by June, we&rsquo;ll see if it makes sense to set a new goal. But the end of the year is really the time to take stock and see where a system has succeeded and where it still needs help. It&rsquo;s also a great time to look at industry benchmarks. A lot of industry publications are releasing studies and best-of lists at the end of the year, which gives you a good sense of where your competitors are. We also encourage our clients to be a part of those lists and surveys, because even if you aren&rsquo;t ranked at the top of your category, it&rsquo;s an excellent way to bring more attention to your brand.&rdquo;

Ultimately, Abbamondi and Beagelman agree that efforts to optimize any aspect of a franchise system should be ongoing, but the end of the year offers a valuable opportunity to take stock of those efforts, giving franchisors a clear picture of where they stand for the new year.

&ldquo;We&rsquo;re working closely with our clients to help them build and grow strong operations throughout the year. In that sense, nothing changes at the end of the year,&rdquo; Beagelman said. &ldquo;But a new year brings a new, refreshed attitude. It&rsquo;s an opportunity to do all the things you couldn&rsquo;t quite manage in the previous year, and we work hard to make sure our clients are totally equipped to hit the ground running.&quot;

How SMB Franchise Advisors Is Helping Its Clients End The Year Strong

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The final quarter is a crucial time for franchisors.

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

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