Franchise Update Magazine Issue III, 2011 | Page 42

Grow Market Lead

It’s closing
time
BY STEVE OLSON

No Fare
How to help the wrong people off your bus

I

t’s a smooth ride when you have the
right franchisees in your system.
But what do you do with those
frustrated franchisees that “aren’t
making it happen?” The ones who don’t
fit your formula and, realistically, will
never turn things around? How do you
make the best of a bad situation?
Be responsive and take the lead. Clean
house where necessary by providing exit
strategies for unsuccessful operators.
Struggling or problem franchisees are
simply a drain on themselves and their
franchise systems. They’re not happy and
are often resentful, worried, and have lost
their motivation. They face growing financial difficulties, and have stressed-out
families who share the burdens of their
failing business.
Do nothing and you
fuel the fire
Unfortunately, some franchisors tend
to sweep these owners under the
rug, hoping they will somehow
go away by themselves. The less
they hear about these unwanted
stepchildren the more they procrastinate in confronting the issues. When calls come in from
these operators everyone runs
for cover. Defenses spring up on
both sides.
Documented conversations
and formal letters cross paths.
The franchisor and franchisee
have lost confidence, credibility,
and trust in each other. Not a
good situation.
Embrace H