NoFrills Dental Franchise
We operate a dental franchise under the brand, NoFrills Dental.
The Company will support the franchisee with a broad range of services designed to enhance practice revenue, improve operating efficiencies and expand operating margins. The Company will share the best practices with each franchisee and provides assistance with information systems, budgeting, financial reporting, clinic management, supplies and equipment procurement, quality assurance initiatives, billing and collecting accounts receivable, marketing and recruiting, hiring and training support staff.
NoFrills Dental’s franchise model is designed to create a partnership in management between the Company and the franchised dental clinics that allows each party to maximise its strengths and retain its autonomy. The Company will support the franchisee with a broad range of services designed to enhance practice revenue, improve operating efficiencies and expand operating margins. The Company will share the best practices with each franchisee and provides assistance with information systems, budgeting, financial reporting, clinic management, supplies and equipment procurement, quality assurance initiatives, billing and collecting accounts receivable, marketing and recruiting, hiring and training support staff. Under our service agreements, the Company is responsible for providing all services necessary for the administration of the non-clinical aspects of the dental operations.
NF Dental Group believes that dental care is an important aspect of an individual’s overall healthcare. Because the practitioner is best qualified to manage the clinical aspects of dentistry, the provision of dental care must be centered round the dentist. However, current market trends in healthcare are increasing the complexity of operating a dental practice. Consequently, dentists are looking to become part of a franchise system to manage the non-clinical aspects of dentistry and provide the business skills that can improve practice operating performance.
The Company believes that, similar to other sector of the healthcare delivery system, the delivery of dental care is fundamentally a local business. Therefore, the Company operates its business in a decentralised manner and maintains the identity of the franchise.
Our franchise model is designed to create a partnership in management between the Company and the franchisee that allows each party to maximise its strengths and retain its autonomy. Under the Company’s franchise model, the franchisee continues to own its practice and has sole purview over the clinical aspects of the practice while the Company manages the business aspects of the practice. The Company’s method of franchising is consistent across practices and even when allowed, the Company does not employ dentists.
NF Dental Group believes that the core values of a business partnership are shared governance and shared financial objectives and has structured its franchise model to achieve these goals. Shared governance is achieved by the formation of a joint policy board which is comprised of an equal number of representatives from the Company and the franchisees. Together, members of the policy board develop strategies and decide on major business initiatives for the practice. Shared financial objectives are achieved through the joint implementation of a budgeting process that establishes the financial performance standards for the dental practice.
Sharing Best Clinic Practices
The Company will organise regular quarterly meetings for all our franchisees to provide guidance with respect to the clinical aspects of dentistry. Leading dentists from our group of franchisees will be selected to share their experience and operations. This provides a forum for dentists to share the best clinical practices of their respective dental clinics and an opportunity for them to build professional relationships with other dentists franchising with the Company. While the primary emphasis of these sharing sessions is on the clinical aspects of dentistry, it will also provide the Company’s management an opportunity to communicate with our franchised dentists. This enables the Company to continue to build strong, mutually beneficial partner relationships with its franchised clinics.
Evaluating & Negotiating Third Party Contracts
The Company recognises that the source of payment for services affects operating and financial performance. The Company assists its franchisees to analyse their revenue and third party contracts on an ongoing basis and recommends methods to improve operating efficiency. As a general rule, the Company believes that growth in market is best facilitated where the third party mix of its franchisees mirrors the third party mix for that market. The Company assists each of its franchisees in evaluating and negotiating third-party contracts on a local, regional and national level.
Clinic Development & Management
The Company believes an inviting professional environment is a critical aspect of overall patient satisfaction. Each of the Company’s franchised clinic should be constructed to be warm, attractive and inviting to the patients in addition to being highly functional. The Company’s dental facilities have from three to 28 operatory, and typically accommodate general and specialty dentists, dental hygienists and dental assistants, a business manager and a receptionist. Generally, the clinics are stand-alone or located within a professional office building and range in size from approximately, 1,500 to 3,000 square feet.
The Company will work with each of its franchised dental clinics in analysing utilisation of existing capacity and identifying facility upgrade and expansion priorities. The Company also provides its franchisees guidance in the site selection process. The Company initially constructs each clinic as appropriate for the market and equips additional equipment as necessary through a capacity and utilisation analysis.
The Company uses architectural design services to improve the clinic design process and to further ensure that all clinics are properly constructed and meet the standards set forth by the government. To this end, the Company works with each franchised dental clinic to establish a defined set of standards for each clinic, such as operatory design and dental equipment, which are consistent with the branding of “NoFrills Dental”. The Company believes such clinic standards are necessary to speed the site development process and create consistency across newly developed clinics, leading to enhanced staff and provider productivity.
Budgeting & Planning: Financial Information Systems
The Company assists each franchised clinic with budgeting and planning. The Company and each franchisee will develop a strategic plan for increased market penetration on an annual basis. The Company and each franchisee will then jointly develop a budget which sets specific goals for revenue growth, operating expenses and capital expenditures. Once a budget has been approved, the Company measures the financial performance of each franchised clinic on a monthly basis and compares actual performance to budget.
The Company’s financial information system enables it to measure, monitor and compare the financial performance of franchised clinics on a standardised basis across its entire network. The system also allows the Company to track and control costs and facilitates accounting and financial reporting process. This financial system is part of our proprietary dental practice management cloud system, NF MediCloud and will be installed in all our franchised clinics.
Development & Implementation Of Dental Practice Management System
The Company will install its proprietary dental practice management cloud system, NF MediCloud in all our franchised clinics, to facilitate patient scheduling, invoice patients and insurance companies and to assist with clinic staffing and other practice related activities. The Company believes that our scheduling, electronic data interchange and data management features are superior to others that are commercially available. In addition, NF MediCloud is scalable and capable of accommodating to all other dental clinics in Singapore and around the world. The Company also has plans to develop a data warehouse and decision support system to analyse information across its entire network.