CBA explains new franchising policy
Anthony Windress, Executive Manager Key Accounts Franchising, Corporate Financial Services, Commonwealth Bank explains their role in the process.
What trends are you noticing in franchising?
There’s a real focus on margins and profitability. One key trend is much tighter controls over variable costs such as labour and cost of goods sold. This is helping to maintain margins and profits.
How does CBA help both franchisees and franchisors?
We have a two-pronged model. On one hand we’re assisting individual franchisees and on the other hand we provide financial assistance to franchisors, for accredited systems. Because we have a strong understanding of both sides of franchising we’re able to deliver a high level of service and value to our franchisee and franchisor clients.
How is your new strategy of looking after customers by "brand" as opposed to "geography" being received?
This strategy is in its early days and at the moment our franchise clients are getting to know their new relationship manager. But early indications confirm clients appreciate having a relationship manager who fully understands their business and has a number of their peers under their immediate management. So a relationship manager might specialise in servicing Subway franchisees, which means they are able to compare and contrast different Subway businesses right around the country.
How is the Commonwealth Bank differentiated from other finance providers?
Our relationship managers manage by brand, not location. By contrast, many other financial institutions look after franchisees from many different brands in the same geographic location. Our approach means our relationship managers develop specialist knowledge of a franchise system and brand. We also take the same approach with the franchisors, making sure the relationship is managed by a specialist not a generalist.
