Network in crisis Posted by storminnormin

I take the same view as Andy in that it is seldom productive to listen to maons and groans of others - it's much healthier to examine your own performance against your own goals and targets. Any issues around support are best dealt with by meeting the franchisor (or at least a member of their business development team) and building a development plan that will work for you. Set some personal milestones or performance indicators that you can work to and encourage feedback from people qualified to give it. Don't be afraid to make mistakes as long as yu are learning from them. Identify what training (if any) will help you and find someone who can provide it, preferably from within the franchise. Above all, don't fall victim to the masses - in any group there will be a lot of negative energy and also positive - lean towards the positive side and give yourself small steps to take on the road to a successful business. If it has wroked for others, it will work for you.

JT

07889 861969

Thanks there is some sound advice in there.  The group (which actually is more like 60%) that are unhappy contains a number of quite successful members so it isn't just a group of under performing colleagues or gossipers which was quite an assumption although I can understand someone jumping to that conclusion.  I am not necessarily struggling, it just worried me there are so many uphappy members with serious questions about the future of the franchisor and our questions are not being answered.  I agree discussing the issues professionally is the best way so I will follow that option up again.  We have tried this a couple times and been stonewalled.

Hi Stormin

This is a difficult question to answer as it lacks in detail and in all honesty an independent review  would be needed to gain the facts and put forward some advice based on a complete overview of the franchise in question.  (something which has no legal basis and in most cases is impossible to achieve)

However, based on what you have said:  There are some obviously worrying signs there and you have a right to be concerned.  You have invested into what should be a tried and tested model and put your trust in the franchise you have bought into, as have the remainder of the franchisee base. In return you should expect nothing less than 100% dedication and hard work from the franchisor, as they expect from you.  When this does not happen franchises can begin to flounder and unrest within the franchisee network is inevitable.  Also - new franchisees should have available to them all facts in place about the franchise, it's current franchisees and the rate of targets achieved by those who have already bought into the system.  If this information is not available to them then they need to look elsewhere.

Joel and Franchisepro brought up some good points. 

1.  In some franchise networks there is a level of unrest, this arises from the fact that it is inevitable the system will not work for everyone, it is known as "franchisee churn" and with every system there will be people leaving for various reasons, some of which may leave with a bad impression of the franchise despite all the efforts of the franchisor.  This small minority can have a very loud voice and you need to be sure that you are not dealing with that minority only.  Where that minority turns into a majority or simply a larger than average percentage, then it is very concerning and points to obvious problems with either the franchise system or management.

2. Is the system working for you?  If so then you need to look at your own situation first and not those of new "recruits" or the situation of existing franchisees.  You are the #1 priority.

2.a - However, it is a concern if the framework of the franchise system is put in danger by a growing number of unhappy franchisees, in some cases it is very possible to carry on with the business without the franchisor, in the case that they go bust, but in many cases also, where the franchisor provides to it's franchisees the leads to create business and a central management programme, then it could be that without them your franchise is worth nothing.

It's difficult to give advice on this really as I do not know the franchise and because without a hell of a lot of investigation there would be no real answers to be found from my part.  But saying that, my generic advice would be to take stock, you have bought your franchise so work at it, take note of the current situation of the existing franchisees and ensure that the franchisor sticks to their agreement. 

Out with that - if all goes titsup then make sure you have a good solicitor and see what you can rake back of your franchise fee.

Thanks for posting Stormin and if you have any questions feel free to private message me here or email me at matthew @ the-franchise-shop.com or of course create another post!

Best wishes and hope all works out fine for your franchise and fellow franchisees.