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Franchisee Support Has to Start Somewhere. Start With the P&L.
By Paul Segreto
CEO & Founder,
Acceler8Success America.
Meaningful support begins with understanding the numbers and taking action before financial pressure becomes a crisis.
Two of my recent articles (linked below) prompted considerable engagement, thoughtful comments, and questions that deserve continued discussion. I appreciate the willingness of so many people to contribute, including those who challenged my perspective.
If Your Franchisees Could Get Their Money Back, How Many Would Stay?
The Conversation Started. Now Franchising Needs to Keep It Going.
A central issue running through that conversation was support.
What does meaningful franchisee support actually look like? How does a franchisor know whether it is helping? And when does that support begin… while there is still an opportunity to address a developing problem, or after the franchisee has fallen behind on financial obligations?
Those questions led me to another set of questions.
When franchise agreements require franchisees to submit profit and loss statements, are franchisors following up to ensure they receive them? When those P&Ls arrive, is someone actually reviewing them? Is that person prepared to interpret the information, discuss it with the franchisee, and help determine what should happen next?
Or has submitting the report become another requirement satisfied by sending an attachment?
A strong starting point for franchisee support is the P&L. But collecting it is only the beginning.
A profit and loss statement provide a structured view of revenue, expenses, and profitability over a defined period. Properly prepared and reviewed regularly, it helps move the conversation from general impressions to specific questions about how the business is performing.
That matters because.........Read More
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