IDENTIFYING AND ASSISTING TROUBLED FRANCHISEES

Every franchisor has good operating and marketing systems in place. Every franchisor also needs a good system for identifying troubled franchisees, especially before the problem grows. To avoid fights with franchisees you need to identify struggling franchisees and help them while their problems can still be amicably solved.

How do franchisors nip franchisee problems in the bud?

  • Know who in your system is having problems.
    • We help franchisors develop systems to identify struggling dealers.
    • Let us put a tool in the hands of your operations department that will raise the proverbial red flag when a franchisee begins to struggle.
    • Equip your team to take action at the first sign of a problem.
    • Make the most of all the data you already have.
  • Develop a systematic approach to assisting franchisees with their business problems.
    • Franchisors need to have a menu of programs, analytical tools and tangible forms of assistance to bring to the struggling franchisees.
    • With a good system, a franchisor can sometimes identify and start to fix the problem before the franchisee becomes fully aware of where she or he is headed.
    • Give your operations team powerful tools to help the franchisee jump start his or her business.
    • Increase the likelihood of turning the situation around.

Develop data-based initiatives
We help franchisors develop systems for identifying problems by using data the franchisor already has:

  • Missed or late payments
  • Bounced ECH royalty withdraws
  • Failed quality assurance inspections
  • Customer complaints
  • Lagging franchisee sales

We help franchisors develop a strong menu of franchisee assistance programs to take action when problems are identified.

  • Help with financial analysis
  • Programs for assistance with neighborhood marketing
  • Additional operational training
  • Mentoring programs to enlist the help of successful local franchisees
  • Sometimes even financial concessions

Don’t call a franchise attorney when you’re ready to terminate a struggling franchisee. Don’t let the default notice be the first communication that your company has with a struggling dealer.

A systematic approach to identifying problem franchisees and for providing them with meaningful assistance is as importance to a franchisor as his operating system.

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