Content creator Tanuki Garage last week posted a video in which he tested the quality of fuel from various petrol stations across Nairobi. According to his findings, Shell V-Power, a premium fuel, performed worse than its standard counterparts. Tanuki’s tests from one station revealed that standard fuel scored 91 PON, while Shell V-Power achieved 87 PON. 

Vivo Energy, the company behind the Shell brand, responded to Tanuki’s claims. “Our fuel imports into Kenya adhere to strict quality standards…we have stringent quality control measures in place.”

Vivo Energy operates a network of over 3,900 Shell and Engen-branded service stations across Africa. As a franchisor, the company must control the quality of its products to guarantee that its customers receive the same level of service or product across its locations. In this article, we break down franchising and how it works. 

Franchising is a form of business relationship in which one company allows another—or an individual—to use its trade name and business model for a fee. Originating in the USA in the 1850s, franchising has spread worldwide. 

The owner of the product or services (franchisor) allows the franchisee to use their brand name and other systems of operations for a certain period. This is regarded as a low-risk and low-commitment business strategy for building a presence in foreign markets and has enabled many firms to build internationally recognised brands around the world. There are two major types of franchising. 

1. Product and trade name franchising: This is a contractual arrangement in which the franchisee is only allowed to buy or sell the franchisor’s product or production line. A classic example of this is the Coca-Cola Company, which has independent bottlers around the world and supplies them with concentrate and specifications to prepare soft drinks. 
2. Business format franchising: This refers to the holistic relationship between the franchisors and franchisees/sub-franchisors, not only the products and services. Currently, Kenya lacks specific franchise laws, but franchise agreements are governed by general contract law.

The quality control dilemma

Quality control is a crucial aspect of running a successful franchise business. It ensures that customers receive consistent products and services across all locations and that your brand reputation is maintained. This consistency is paramount to maintaining the brand’s reputation and ensuring customer loyalty.

The quality control dilemma arises when trying to balance standardising the products and services being offered vis a vis the need to maintain the franchisee’s autonomy. 

Maintaining standards and consistent quality is a challenge, especially when multiple franchisees operate in different markets with different cultures and socioeconomic environments. It may be quite an arduous task to source identical ingredients or materials across different regions. One might also find that consumers will insist on purchasing products if the ingredients or materials are only sourced locally.  

In a new region, the franchisee will be expected to train new staff who may be unfamiliar with the procedures for handling particular goods or services. Lastly, high employee turnover can also negatively affect product or service consistency. So, how can franchises control quality?

1. Define clear expectations

Organisations need to establish clear and realistic expectations for their franchisees. These should be distinctly set out in all agreements and reinforced in training. They should cover all aspects of the business, such as product quality, customer service, safety, hygiene, marketing, and reporting. 

2. Conduct regular audits

Audits measure and evaluate performance against set expectations. They can help identify areas for improvement, compliance issues, customer satisfaction, and potential risks. A system should document and report the results of these audits and take corrective actions if needed.

3. Review and update

Quality standards and procedures ought to be reviewed and updated regularly. Quality control is a continuous process of improvement and adaptation. It is prudent to identify what is working well and what needs to be changed. Quality standards and procedures ought to reflect the changes in your market, industry, customer preferences, or regulations. 

4. Incorporate technological advancements

Given technology’s continuous evolution, it is essential to leverage it to streamline and automate the relevant processes and improve product or service quality. Relevant software can help monitor and manage franchise operations more efficiently and effectively by tracking, analysing, and reporting. 

5.Take customer feedback seriously 

Customers are the ultimate judges of your product or service quality, and their feedback can help you improve your offerings and enhance your brand loyalty. It is also very important to ensure that responses are handled in a timely and professional manner. How a brand particularly deals with customer feedback is very important. This is especially true of any negative feedback. If such a situation is handled poorly, it would negatively affect how consumers view and interact with the brand, therefore leaving room for competitors to sweep in and take over.