SYSTEMS THAT LINK FRANCHISEE PROFITABILITY WITH FRANCHISOR PROFITABILITY
When a franchisor
designs plans to increase franchisee unit level profitability, the key
question has to be, “How can we help franchisees make more money
for themselves while we make more money too?” Franchisor profit
is driven by royalties based on franchisees’ top line sales in
most franchise systems. But there are many ways to make franchisees’
bottom line stronger. The problem is that not all of them strengthen
the franchisor or its brand. Let us help you focus on the solutions
that work for both franchisor and franchisee.
Scott Kern, founder
of the Franchise Law Source, spent years running a franchise company
where franchisee profitability was sometimes a problem. Allan Hillman
has represented franchisees and franchisors in many situations where
unit profitability was the root cause of the dispute. They have experience
in developing and implementing programs that increase franchisee performance
while serving the franchisor’s interests as well.
Let us help you
design business building programs that will improve the bottom lines
of franchisee and franchisor alike.
advertising and distribution programs
Programs that we have implemented include mutual advertising programs
requiring additional franchisee commitment to trigger new franchisor
contributions to marketing. Another requirement of these programs is
the participation and contribution of a certain number of franchisees
in a region to trigger the franchisor’s payment.
such as new product introductions and image upgrades have to be carefully
implemented to insure compliance with your franchise agreement and,
in some cases, with local laws and regulations.
Even introduction of the franchisor’s product
or service into a new channel of distribution – if handled properly
– can build the business for both the franchisee and franchisor.
Can’t imagine how introducing your products into
a new channel of distribution competing with your franchisees will build
their business and yours?
us to help you imagine how to build and execute win-win programs
to improve profitability in your company.
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