If you received notice of termination of a franchise agreement, you probably feel like you’re on shaky ground. You may have worked hard to make your franchise a success, but without your franchise and the support of the franchisor, you may not know what your future holds. Will your customers lose your store that’s become a vital part of the community? After the termination of a franchise agreement, will you be able to continue to operate a business? Those are questions some franchisees near our headquarters near St. Louis, MO, are looking for answers for — just like numerous franchise owners around the country.
Performing Without a Safety Net
There were probably some compelling arguments for operating a franchise rather than an independent business. Franchisors develop successful business models and then provide their franchisees with tried and proven methods that put them on the right path to success. The franchisor probably also provided you with specifications for equipment and technology or provided it directly to your franchise location. After the termination of a franchise agreement and the loss of that guidance and support, it may seem like you’re stepping out into the unknown.
There are other resources at your disposal, however, that can provide your business with structure and give you the help and guidance you need to establish your own brand.
Your Point of Sale System
One valuable asset is a point of sale system (POS system) designed for your type of business. POS systems do more than just manage payment transactions — they have features that allow you to use it as the “command central” of your business. A state-of-the-art POS system supports logical workflows for managing inventory, offering a loyalty program, building customer relationships, executing successful marketing campaigns, and managing employees. Top systems also integrate with other applications so data is always up to date and accurate across your accounting and other business systems.
The right POS system for your business will also automate many manual tasks, like employee clock in and daily reporting, to save you and your team time and help you maximize productivity. Moreover, the data from your POS system can provide you with insights that help you make smart decisions about your business and help you improve your bottom line.
A POS solution provider that’s also a trusted business advisor can help you map out your goals, find the right technology solutions to accomplish your objectives, and then be with you each step of the way to provide the service and support you need. When you form a strong partnership with a knowledgeable POS solution provider, you aren’t out there on your own.
A Lot to Consider
Of course, termination of a franchise agreement and the decision to establish your own brand will mean facing new challenges. You need to make sure you abide by all the terms of your franchise agreement — depending on the circumstances, you may not be able to run a competing business or use any of the processes or procedures you used before. It’s wise to speak to an attorney to fully understand your options.
You may also find that relationships you enjoyed as a franchisee with suppliers may be altered since your single location won’t have the buying power of a large chain. You may want to investigate joining a purchasing cooperative or making other arrangements that can help you negotiate better prices. Start planning as soon as possible and set the best course for your future.
Down but Not Out
In a time of uncertainty in the retail industry, the termination of a franchise agreement is a reality that some franchisees may have to face. But it doesn’t necessarily mean your career as a business owner is over.
Your business sense and your commitment to your community, along with the guidance and expertise of new partners, may enable you to have a new grand opening under a new brand.
If you’d like to discuss your next steps, contact PlazSales.
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