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Unviable stores turn profitable

Are you a franchisor facing the problem of unviable franchise stores running losses for you. Are you just a spectator waiting for things to get back on track but still can not see any results. Here is what you can do

By Neha Malhotra Sub Editor, Franchise India Holdings Limited, Web Division

A franchisee takes up a franchise to generate profits. When taking up a franchise he might be very sure of his decision but there could be a time when he feels he can’t live up to it and that this is not his cup of tea. But as he is bound by an agreement, he may not see the door to an exit. In such a situation, it’s time for the franchisor to take the plunge and control the situation.

Here’s how…

Step 1 Being a franchisor you can try giving the support from your end to the franchisee so that he may be able to get the situation under control. In case he does not succeed, you can get in talks with him and try to get the franchise back from him. All the legal hassles can sure be handled amicably in such cases.

Step 2 Now that you have the command in your hands, it is for you to decide how you wish to proceed further. The most crucial decision here would revolve around which format would you want to run the store on. From here we can devise three paths, which are:

  • Convert to a co-owned store Now that you have the operations in your hands, you keep them with you and turn it into a co-owned store.
  • Further give it for franchising If you do not wish to run the store on your own, you can further give it up as a franchise to another party. This can be a new franchisee or an existing franchisee; however, it is more advisable to give it to an existing franchisee as he is already familiar with your business’ systems, operations, policies and procedures. This will be advantageous as he can put to use his experience and expertise to deal with the hurdles that come in the way.
  • Apply both the paths And if you feel, that any of these will alone not solve your problem, then you can put both of them to use. Wondering how… At first as you take the operations in your hands, you can keep them with yourself for a while. During this time, you can first identify what all is hindering the running of the store. Then you can obliterate the negatives and induce positives in the working of the store. Once you feel all the operations are streamlined and the business is back on the track, you can give up the franchise to a franchisee. But here again it would be advisable to pick an existing franchisee, the reasons being the same as mention in the second path given above.

Step 3 Once you’ve made the decision as of which path you wish to choose, its time to give actions to your thoughts. So it’s time to bid a farewell to unviable stores and shift your focus on profit generation!

Comment
ANURAG 10, Oct 2009 at 10:50 PM
sir/ madam Can you please elaborate on these HBF and provide necessary details how to set up these . Thanks
sanji walia 11, Oct 2009 at 07:03 PM
I want know more information
K.V.Phaneendra 11, Oct 2009 at 11:02 PM
want to know more details
shweta 12, Oct 2009 at 02:40 AM
i found your article interesting.i'm MBA and lookin for a home based business.can u sugest some co. in finance / consultancy,trave.i'm lookin for high growth n good returns business.
Elaine Fernandes 14, Oct 2009 at 11:05 PM
I am on the lookout to select and run a suitable Franchise. please send me a list of HBF i could choose from.
I.krishna kumar 02, Feb 2011 at 05:06 AM
I am on the lookout to select and run a suitable Franchise to be taken by wife operating from home. please send me a list of such franchisees to select and to seek more details With warm regards,
sajeev 02, Feb 2011 at 01:02 PM
i m interested in HBF and like to know more details,
manju 02, Feb 2011 at 05:08 PM
can i have more about this home based business.
Shailesh Chawande 02, Feb 2011 at 08:01 PM
pls provid emore details on HBF and which form or companies are interested in performing with HBF
Mahesh Mirchandani 04, May 2011 at 05:16 PM
Hi am interested, please send me more details.
mahendra singh 02, Dec 2012 at 11:56 AM
Hi,\r\nI am looking for home based business opportunity on priority.Kindly give more info on the Home based business options.\r\n\r\n\r\n
Ranjithkumar 22, Oct 2013 at 06:18 AM
i want more details
preethi 05, Nov 2013 at 03:28 PM
hi iam interested in HBF..Kindly send me more hbf options to my mail id..thanks
Soumyajit Roy 01, Dec 2013 at 04:37 PM
I am on the lookout to select and run a suitable Franchise to be taken by wife operating from home. please send me a list of such franchisees to select and to seek more details.
Ravisha Madan 13, Jan 2014 at 08:35 AM
Hi I am looking options working from Home. Can you please share your contact number so that I can ask for details.
Jyoti Maru 21, Feb 2014 at 11:39 AM
I want start HBF. Please give me more information and guide me
Mahalakshmi 06, Mar 2014 at 02:51 PM
Can you please provide me more details about Hbf
LATHA 12, Feb 2015 at 08:37 AM
Can you please give me more details and options available.Thanks.
smita 18, Dec 2015 at 07:05 AM
can i know what options are available for women in franchising.
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