Franchises Can Outlast the Parent

Franchises CAN Outlast Their Parent Company What’s the fate of Fat Burger? The idea that some franchises can be left hanging after a parent company experiences financial trouble is a scary thought. But it can happen, and it’s happened a lot more in this economy. Some franchises, like Dial-A-Mattress and Fatburger are left in limbo while their companies decide what they should do. Dial-A-Mattress was sold to the highest bidder, Sleepy’s Mattress, for $25 million, and franchisees are waiting to hear if they’ll be kept or not. Similarly, Fatburger Restaurants of California and Fatburger Restaurants of Nevada, subsidiaries of Fatburger Corp., filed for Chapter 11 in April, and its 90 franchisees are waiting to hear their fate. However, some franchisees are able to pull through. Take Cork and Olive in Tampa, Florida. Franchise owners didn’t even realize they’d filed for Chapter 11 until a laid-off employee of a company-owned store applied for a job at a franchise. However, they’ve managed to stay alive, and all the franchisees meet regularly to discuss how to keep their brand alive and well – without their parent company. It just takes good planning and focus on business fundamentals. This is exactly what ActionCOACH specializes in – helping small businesses be successful, especially when something unplanned happens. Even if a parent company files for Chapter 11, a franchise may be able to remain successful. As Brad Sugars has said, managing business processes and cashflow is key. Also, focusing on what differentiates the business can also be crucial in surviving. ActionCOACH has several franchises all over the country, and just like other small businesses, how they manage their individual businesses is a key factor to their success. All businesses should focus on controlling their operations at all times. Sometimes a downturn gives businesses a “kick in the pants” to Help them realize what they need to do in order to survive – and in all cases, it’s about getting back to the basics.

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