when RLM Group perform audits we focus on the bottom line of the franchisee’s business, many other elements become important – whether the franchisee is providing the franchisor with the necessary reporting regularly, like a monthly profit and loss statement, budgets, etc, and whether this is done on a timely basis. Performance audits should dig deeper into the engagement of franchisees within the franchise system by examining whether they attend meetings and conferences and if they send team members to franchisor-facilitated training programs.

Product: This includes:

• Compliance with the range of core services
• Using approved and preferred vendors
• Display and merchandising of products
• Maximizing sales through product mix ratios
  
  

Promotion: Franchisees should be provided with a corporate style guide that details what they can and cannot do with brand elements, what type of social media they can use, etc. It is important to mention uniforms and other standards that franchisees and their employees must adhere to.

Premises: An organization’s shopfront, office, and even vehicles are how the public perceives it. For long-term success, it is critical that these standards are always met. This involves auditing the premises for cleanliness, accessibility, health, and safety obligations, and ensuring equipment is maintained properly.

People: Franchisees within a franchise network may be held liable for breaches of the Fair Work Act. Therefore, franchisors need to ensure their franchisees are doing the right thing by their employees. It is important to check if:

• Wages and benefits are paid based on agreements.
• Payslips are distributed according to regulations.
• Employees’ superannuation payments are made to their designated fund at the correct rate.
• Validity of agreements with contractors.
• Records of written warnings, meeting minutes, and performance reviews are kept.