MAD Academy Franchisees are expected to monitor closely the growth and success of their business. It is essential that they manage their business through regular monitoring against appropriate business parameters so they are able to make informed and effective business decisions.
Statement of Policy
To assist Franchisees in the monitoring of their business performance, they must agree with the MAD Academy Management Team a set of business targets and attend an annual, or for new franchisees, termly business review, where achievement of previous targets will be discusses and new targets will be set.
Roles and Responsibilities
The business review will be conducted by the Franchise Manager (or one of the MAD Academy directors) who’s responsibility it is to identify appropriate Key Performance Indicators (KPIs) for measuring business performance. At the start of each year the Franchise Manager will propose initial target levels for each of these KPIs but it is essential that the franchisee accepts the targets as being achievable. These targets will form the basis of the Franchise business review.
It is the responsibility of the Franchisee to provide all the completed documentation and financial records requested by the Franchise Manager at least two weeks before the business review date.
All franchisees will be notified of the start and finish of the review period. For established franchisees, the review period will usually be a year. For new franchisees, the review period will normally be a term. Business reviews will be arranged at the end of the review period between the Franchisee and the Franchise Manager.
Most of the data required by the Management Team will be gained from analysis of the Weekly Reports. However, this data may require supplementation and the Franchisee may be asked to submit further information and records prior to the meeting in order for the Management Team to fully understand the profit and loss account of each business.
The business reviews will cover performance against the agreed individual targets and performance against general KPIs. The review process may also cover the following:
- Details of the marketing done during the review period
- Number of pupils who renew from previous term as a percentage of total pupils
- Average number of pupils per class, over the 12 core weeks
- Average number of ‘Classes + Nurseries’ per week
- Hall hire charges
- Analysis of Overheads
- Merchandise profit and closing stock value each term
- Total Expenditure (and therefore calculated pre-tax profit)
After the business review meeting, the Franchise Manager will publish brief minutes of the meeting covering the achievement levels met against the targets set for the concluding period, any actions agreed and the targets agreed for the next period.