The current situation is made of the economic downturn that is forcing franchisees to experience an increase in the number of franchises who are Profit stricken. In such cases, the franchises that are struggling do not get good faith in terms of brand recognition. So, now the question is how the franchise can go ahead with the decision of fixing the struggling points in the franchise.
As a franchise in India, Haldirams see to it that it is important to always make an honest self-assessment on how you have to lead the business model while giving the required support. This support will be working in the structure for placing the offers in the best possible ways. It comes about the time-tested business model that is fit enough for the replication. There is a fair, affordable, as well as a balanced fee structure.
It works for the business to become available for both the franchisee as well as the franchiser. The cash flow projection becomes reality. At all points, you have to make sure that the franchise is having sufficient funds right from the beginning. The procedure becomes a strong business performance that can work with the strategic process in place.
The sustainable development that is planned in place gives the availability of the proper selection of the location site. It also comes inclusive of a territory. The criteria may come inclusive of the business modes and accessible franchise package that works in place. It is inclusive of the preceding operators as well as to disclosures. It also comes with a detailed initial ongoing franchise training system that holds plenty of program sets in place for the franchises. The overall franchise profile becomes a comprehensive one that has a strong selection and recruitment process.
You will get the availability of the robust franchise infrastructure that holds the supportive culture as well these tools are available. But not every franchise business can make the maximum profit out of it and so it starts distorting the nature of the franchise model. However, you will get the availability of several opportunities in which the franchiser starts supporting the franchise by the implementation of the Intensive Care program.
This is a program that comes inclusive of finding out the franchise is at the business risk right at the early stage or not. They do so by conducting regular field visit support as well as intensive business assessment like benchmarking. They always strive for finding out where the problem lies within the business. This is a step that gives a progression and accomplishment of the end objective. They do so by finding out the level of involvement of the franchise. The involvement is also of the team in the day-to-day business operations.
However, when it comes to helping the struggling franchise in terms of fixing the problematic point, there are certain strategies that you should follow.
1. Always keep in mind to never allow the franchise royalty to break
In case you can develop a sustainable franchise business model, then it’s worth considering the issues with the business and it is not at all the royalties that are paying the franchiser. There is some kind of another business issue. Therefore, whenever there is an underlying royalty break, it is not the way that will help in the treatment of the problem.
2. It is not recommended to go for the quick fix solutions
That said, it is also essential to note that the franchise should never look back on the marketing effort in the form of expenditures. Again, it is good to remember that the marketing expense does not come out in the form of the social problem within the franchisee but other points require consideration. When it comes to the Haldiram franchise in India, the Franchise business members always believe that a marketer should be the pioneer of the investment. He or she is a lifeline of the business and all the expenditure.
3. Maintenance of a healthy and strong relationship in the franchiser
It becomes the key to the building of a strong franchise business. So, it will become the responsibility of the franchisee to do everything with the support of the struggling franchise.
These are the points where there is the conduction of intensive financial analysis like the sales analysis, cash flow analysis, benchmarking, to name a few. Besides, they also carry out plans that bring customer satisfaction. There is analysis like the intensive operational analysis. It makes access to the change in the market or area of the franchise. Overall, it results in reduced demands for the services as well as product offerings. It comes with plenty of recommendations for the implementation of the corrective action as well as fixing the issues whenever it is necessary. With the help of the specialist, there is assistance in the objective of reviving the franchise while also improving the performance of the corrective actions.