Help Wanted! The Case for Restructuring the Franchise Business Model

Many restaurants operate within the franchisor/franchisee business model, and these relationships have become particularly strained in the current economy. When times are tough, franchisees typically respond by taking steps to improve operations and preserve the bottom line across stores. These changes can range from minor belt-tightening moves to closing one or more unprofitable locations. Unfortunately, many restaurant franchisees do not currently have the flexibility needed to make changes at the local level due to strict and complex franchise agreements.