Art of the Turnaround
Will franchisees and franchisors love each other more?
Will everyone litigate less?
Will all the participants climb a few points on the satisfaction scale?
The answer is: Effective franchise turnarounds cost a fraction of litigation, create motivated people and generate profitable businesses.
Turnaround situation: a business’ profits and/or cash flow will not fill the business’ needs. Those needs include ROI.
Art of the Turnaround is a programmed way to correct the situation. It respects the franchisee’s personal dignity and the franchisor’s fiscal health. The "slash and burn" associated with larger corporate turnarounds does not apply here.
Money Question, People Answer
The root of all sorts of Franchisee Franchisor conflicts involves money. The conflicts spawn blistering business and legal wars.
Attempts at resolution guzzle time, resources and motivation. Growth energy exhausts itself on attack and defense.
Arbitration or litigation can stall a franchise system's potential. Minds, hearts, dreams and bank accounts agonize. The franchisor's founding vision becomes simply another business that isn't fun.
The emotions engendered in the dependent-independent world of franchising often resemble those found in marriages and families. Feelings of a parent to a child can describe those of an owner to a business. To understand the intimately human context of the problem can reveal previously undreamed solutions.
Turnaround or Terminate?
Caught up in a maelstrom of troubled franchises early in his operations career, Timothy Galfas developed a set of turnaround protocols for the franchise environment. He used them to put together some 200 successful turnarounds. Compared to termination costs turnaround was a human and financial bargain.
From that experience he now shares a program that tailors itself to the special needs of franchisee, franchisor and franchise system.