My Franchise is Struggling: What Are My options?

My Franchise is Struggling: What Are My options?

My Franchise is Struggling: What Are My options?

When a franchisee and franchisor agree to enter into a franchising relationship, they generally do so with the expectation that the franchise location will be well-run and successful. However, there can be situations when a franchise does not perform as anticipated. In this situation, the franchisee may wonder: My franchise is struggling: What are my Options?

Is your Florida franchise struggling? If so, it’s important to get the information and advice you need sooner rather than later. At the Florida Small Business Legal Center, we are here to help support your small businesses! Contact the Florida Small Business Legal Center today to schedule an appointment.

Why is the Franchise Struggling?

When you have a struggling franchisee, you will want to do what you can to identify the source of the problem. Do you know why your enterprise is struggling? Some factors, such as construction obscuring your storefront or extensive property damage, may be clearly contributing. Others, such as low-profit margins in a seemingly positive market, may be more difficult to detect. Knowing the contributing factors can help you determine what you can control or change.

Talk with an Experienced Florida Small Business Attorney

When assessing the reasons that your Florida franchise may be struggling, it is in your best interest to work with an experienced Florida small business attorney. Your Florida small business lawyer can help you examine your situation from a legal perspective by reviewing your franchising agreement terms and developing a strategy to improve your performance. Your counsel can also assist you in preparing to meet with the franchisor to discuss the issue.

Work with the Franchisor if Possible

After consulting with an experienced Florida business attorney, you can set up a meeting with the franchisor. The franchisor may have guidance that can help you improve your business and its performance. In addition, the franchisor may have additional resources to support your business or assist you with selling it to another party.

Real Estate-Related Issues

After evaluating the franchise with your Florida small business attorney, you may have identified certain real estate-related issues. For instance, the property where the franchise is located may have defects that the landlord needs to address. Your lawyer can help you advocate for repairs and, if applicable, reduced rent. If the problem is sales, the franchisee may be able to get the landlord to agree to deferred rent or other terms that will give the franchisee time to improve performance. If you need to sell, you and your counsel may be able to negotiate a way to work with the landlord while the sale is pending.

Not every franchise will succeed. However, it may be possible to make changes that can improve your franchise location’s performance and increase profitability. On the other hand, if your franchise’s struggles are due to conditions beyond your control, you may need to put your efforts toward developing an exit strategy. In either circumstance, it is in your best interest to consult with an experienced Florida business attorney regarding your franchise issues. Your and your lawyer can take an honest look at the situation and determine how to proceed with your Florida franchise.

Contact an Experienced Florida Business Attorney

Attorney Richard Sierra at the Florida Small Business Legal Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.

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