Link between your customer and your employee

Franchise organizations incur substantial losses every year as a result of wilful and intentional acts of fraud by frontline sale employees, neglected store operations, poor training, and employee inefficiency.

Franchisors face a lot of challenges with the franchise business model and their growing number of franchisees to keep track of. Most of the franchisors encounter the problem of under reporting sales by the franchisee, which results in franchisees to pay less royalties, hence the franchisors cannot make enough money from royalties to put towards growing the brand, supporting the franchisees operations, or selling more franchisees. This universal struggle between franchisors and franchisee can pose a threat to the brand and can be detrimental to both the franchisees and the franchisors existence.

Franchisors relationship with franchisee should be based on trust, but they should also be regularly evaluated to protect your brand. As a franchisor, you have the responsibility to ensure that the sales are reported accurately, brand standards are upheld and collective advertising spend is utilized effectively.

There are many ways for a franchisee owner to intentionally under report sales to the franchisor, thereby reducing the amount they pay in royalties. A few methods of under reporting may include:

  1. Voiding sales, refunding, item deleting, and failure to ring all transactions.
  2. Ringing sales in training model.
  3. Using unauthorized register at varying times during hours of operations.
  4. Not recording outside catering sale.
  5. By reporting and paying fees on a sales number less than what the sales actually were.

By mystery shopping your sales force, not only are you potentially increasing your ability to sell franchisees, but you can potentially uncover problems before they occur. And the mere fact that you have mystery shopped your sales force can help you to mitigate damages in a lawsuit by demonstrating that you took adequate measures to ensure proper compliance and accurate representation.

Mystery shopping your sales force will help you:

  1. Ensure compliance.
  2. Check sales force follow up.
  3. Refine sales techniques.
  4. Improve closing percentages.
  5. Ensure that only qualified franchisees are targeted.
  6. Ensure that you are not making illegal earnings, claims or misrepresentation.
  7. Build a defense should you ever find yourself in litigation.
  8. Ensure higher royalty collections.
  9. Reduced cash, inventory and food loss with improved food, labor and paper cost.
  10. Build more profitable brand.

At Gypsy Inc., we can help determine whether your franchisees are willingly or unknowingly under-reporting sales due to inefficiencies and leakages. These things can have a significant impact on your brand name, customer satisfaction and repeat purchase, which serves as a backbone of every business structure/enterprise.

We provide you with accurate, comprehensive and unbiased view of how your business is conducted from the customer side of interaction, so you can make sure the customer keeps coming back. We also help you ensure the integrity of your employees with close observation of product and or cash handling, making sure your profits stay where they should be.

So if you are in need of a “specialist” in the mystery shopping industry, Gypsy Inc. is the expert firm for you. We can help support the needs of a small kiosk chain operations all the way through to the mega corporations in the business circuit. Just let us know how we can assist you with your endeavors and we can easily create a program tailored to your exact needs.