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Log In / Register | Feb 21, 2018

News and stories about managing, leading and operating a franchise

Why Can't My Franchisor Innovate Better Returns?

Having system standards rated close to 100%, here I am, a model operation of the franchise network. Doing so was supposed to raise my return on investment, but honestly, it's still low. My money would do better in a bank CD than the returns I get from all the hard sweat that I put into my store. There. I said it. So why should I expand to a second store just because it can be cash positive? Who wants to invest $1.5 million to get $50,000 a year in cash after the bills are paid? I need help from my franchisor in rethinking efficiencies and greater revenue per cost center. With this in mind, here is an interesting story coming down the pipe that I hope my own franchisor will take to heart in rethinking the map on getting better returns for the franchisee.

Change: A franchise's friend or foe?

“Nothing is constant except change.” That quote came to mind today in thinking about what franchise organization would I want to be part of. It may be a strange way to think of picking a franchisor, but it is a crucial way to think.

After all, if the franchisor is not on top of change, then all of the stores die a slow death until one day the network closes its doors.

Change is in the air. Fads change. Food even changes. Remember when Tofutti, an ice cream made of Tofu, was popular? Technologies change. Buying habits change. Obviously, with all of this dynamism, selecting a franchise that is going to be there in the long-term and not just the short-term is critical. One wants to be with a franchise product or service that is going to be there years from now. So, pick a product that looks like it has market stability — staying power. But that is not enough. Pick a franchise that has growth through innovation.

Brand Molested, Franchisees Revolt

Don't think that not much happens in Tucson, Arizona, where Marshall Wyatt Earp once roamed. It seems the law is being summoned again. After a franchise chain's namesake, Picurro, harmed the brand for alleged child molestation, four Picurro Pizzeria franchises in Tucson want their franchise contracts voided . The question is, can they?

This is no easy feat, but what else is one to do if the company's CEO and namesake has slandered the Picurro name by sexually soliciting minors? Picurro's name has been in the papers and on television for the offense. The bad publicity seems to be affecting business. Franchise owners say they have seen a dip in business of some 40%.