EARLY INTERVENTION TO INCREASE UNIT LEVEL PROFITABILITY
Once a poorly performing
franchise unit is identified, the franchisor must spring into action
with decisive communication and commitment to fix what’s wrong.
Without early and definitive action and relentless follow-up, struggling
franchisees will continue to flounder and eventually fail.
At Kern & Hillman,
LLC, we can help franchisors design and implement systems that turn
struggling stores around. Call it what you like – sending a franchisee
to boot camp, giving a struggling dealer a jump start, a commando raid
to turn things around or rallying to a franchisee’s defense –
you need a program that is both aggressive and that effects change.
To have a chance
at reversing a troubled store’s fortunes these systems must include:
- A bold statement
that the franchisor understands the problem and intends to see it
- Regular and systematic
communication with the franchisee in trouble and all the constituencies
that can help.
stepped up support from the franchisor’s operations department.
- Retraining where
- Mentoring by
successful franchisees on financial, operational, customer service
and marketing issues.
- Market research
at the neighborhood level to understand why the unit has failed to
flourish while others are succeeding.
- A dialogue in
the entire franchise community about the problems struggling units
are facing to tease out solutions others have used.
- Regular publicity
about the new programs’ success.
are not enough. Franchise companies all rely on their operating systems,
but few have special “emergency repair systems” for franchisees
that start slow or later begin to struggle. Let us at the Franchise
Law Source help you build these emergency repair systems without illegally
discriminating against franchisees or violating your contractual and
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