I am currently in a food franchise and the franchisor is doing absolutely nothing for my store. We have been running at a loss for the last 9 months.

This is a most unfortunate situation and I would need more details about your dilemma to advise specifically for your current situation. However in our experience, food franchises have experienced significant pressure over the last 18 months. Input costs have increased and consumers have limited disposable income in their pockets. Responsible franchisors have become increasingly […]


This is a most unfortunate situation and I would need more details about your dilemma to advise specifically for your current situation. However in our experience, food franchises have experienced significant pressure over the last 18 months.

Input costs have increased and consumers have limited disposable income in their pockets. Responsible franchisors have become increasingly focused on intensifying their support to franchisees. They collect management accounts monthly, provide valuable financial advice and have invested time and focus into more effective procurement, training and field support.

Franchisees in hot water have also been introduced to intensive care programmes which is a joint effort by the franchisee and franchisor (and in some instances the financial institution with a vested interest) to remedy the situation.

My advice to you is to ask your franchisor for assistance and to be completely transparent in order that the current problems are addressed. For the sake of your investment and the implications to the brand – you have to work together to put a firm plan of action in place.

If your franchisor is a member of FASA you may opt to pursue a mediation session if direct talks fail. Be persistent, there is no easy route to anywhere worth going, we wish you all the best in your endevours.

Lindy Barbour
About the Author
Lindy Barbour is the managing director of Franchize Directions. Lindy has been involved in the development of a number of successful franchisors and has been instrumental in their expansion strategies. Lindy continues to operate as a lead consultant as her passion remains the development of sound, sustainable South African franchisors. She is a nominated FASA (Franchise Association of South Africa) council member and also serves on the FASA membership committee.

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