Turning around a failing franchise location is never easy. It requires commitment, clarity, and courage—from both franchisor and franchisee. But most of all, it demands a partnership built on trust, transparency, and a shared determination to succeed. There’s no room for finger-pointing or isolation. Now is not the time to erect walls. Now is the time to recognize mutual goals and to rebuild from common ground.

The reality is this: some locations will struggle. It could be due to poor site selection, operational breakdowns, local economic shifts, inconsistent staffing, lack of marketing, or a loss of customer trust. Regardless of the cause, when performance dips, both parties have a choice. They can retreat into silence and self-protection, or they can step up, engage, and face the challenge together. A successful turnaround hinges on the latter.

The Franchisor’s Role: Guidance, Resources, and Motivation

The franchisor is the architect of the brand. They’ve designed the business model, refined the systems, and built the foundation for scalability. In a turnaround scenario, their responsibility is to provide the tools and support that allow the franchisee to execute at a higher level—even under pressure.

This includes:

• Operational audits to identify performance gaps in service, cleanliness, food quality, or execution
• Benchmarking tools to compare metrics across the system and spot red flags
• Hands-on coaching from experienced field staff who understand both the brand and the realities of daily operations
• Marketing and promotions that can drive immediate traffic and reintroduce the location to its trade area
• Negotiations with vendors or landlords to ease financial strain where appropriate
• Emotional leadership—acknowledging the franchisee’s stress, reinforcing a belief in the brand, and motivating the team to keep pushing forward

A franchisor cannot—and should not—do the work for the franchisee. But they must show up with solutions, not platitudes. The best franchisors are equal parts strategist, coach, and partner.

The Franchisee’s Role: Accountability, Execution, and Urgency

While the franchisor provides the playbook, the franchisee must run the plays. They are on the front lines, facing customers, managing staff, and making real-time decisions that shape the outcome of the business.

In a turnaround, the franchisee must double down on fundamentals:

• Staffing—ensuring the right people are in the right roles, and that they are trained, supported, and held accountable
• Service quality—consistency, friendliness, and cleanliness must become non-negotiable
• Local marketing—even small, grassroots efforts can re-engage the community
• Financial discipline—tight control over costs, aggressive waste reduction, and timely vendor payments are essential
• Transparency—sharing what’s working and what’s not, so franchisor support can be targeted and effective

Most importantly, the franchisee must be willing to ask for help. Pride is a dangerous barrier in turnaround situations. Denial allows problems to grow. Franchisees must take responsibility for what they control, but also communicate candidly with their franchisor to access the help that’s available.

A Two-Way Street: Communication as the Cornerstone

The relationship between franchisor and franchisee is interdependent. Neither side can succeed alone, and in a turnaround, alignment is critical. That alignment starts with honest, two-way communication—not just updates or reports, but real conversations about what’s happening, what’s possible, and what’s needed.

Communication must be:

• Frequent—weekly, even daily check-ins to maintain visibility and momentum
• Candid—no sugarcoating, no excuses, just facts and next steps
• Constructive—focused on problem-solving, not blame
• Forward-looking—tracking what’s improved and what still needs work

When communication breaks down, so does trust. And without trust, no turnaround effort can succeed.

When Turnaround Isn’t Possible: Planning a Dignified Exit

Sometimes, despite the best efforts of both parties, the turnaround doesn’t succeed. The unit may be too far gone, or the local market may no longer support the concept. In such cases, the conversation must shift from recovery to resolution—but that shift must be handled with care and dignity.

A respectful exit plan may involve:

• Assisting in the resale of the unit to another qualified operator
• Reacquiring the location as a corporate store, with fair compensation
• Closing the unit in a way that preserves brand standards, communicates professionally with staff, vendors, and customers, and protects the franchisee’s reputation

A failed location does not mean a failed person. The franchisor must treat the franchisee as a partner to the end, recognizing their financial and emotional investment in the brand. The goal is to preserve dignity and integrity on both sides while minimizing disruption to the system as a whole.

Shared Goals, Shared Responsibility, Shared Success

Turnarounds aren’t easy, but they are possible—when franchisor and franchisee work together with open minds and shared purpose. The franchisor brings systems, experience, and support. The franchisee brings grit, local leadership, and urgency. Together, with trust and communication, they can breathe life back into a struggling location—or agree on an exit that honors the effort made.

Either way, what matters most is the strength of the relationship. And that strength is forged not in times of ease, but in times of challenge.

Make today a great day. Make it happen. Make it count!

About the Author

Paul Segreto brings over four decades of hands-on experience in franchising, restaurants, and small business development. A passionate advocate for entrepreneurship, Paul has guided countless individuals on their journey to success, whether they are established entrepreneurs or just beginning to explore the path of business ownership.

Named one of the Top 100 Global Franchise and Small Business Influencers, Paul is also the voice behind the Acceler8Success Cafe, a daily content platform where thousands of entrepreneurs gain insight and motivation. A lifelong advocate for ethical growth and brand integrity, Paul continues to coach founders, franchise leaders, and entrepreneurial families, helping them find clarity in chaos and long-term success through intentional leadership.

Ready to take your next step in business or looking for expert insight to overcome today’s challenges? Reach out directly to Paul at paul@acceler8success.com — your path to success may be one conversation away.

About Acceler8Success Group

Acceler8Success Group is a multifaceted business advisory platform committed to empowering entrepreneurs, small business owners, franchise professionals, and industry leaders through strategic consulting, coaching, and curated content.

With a strong focus on entrepreneurship, franchising, restaurants, and small business growth, Acceler8Success Group delivers actionable insights and real-world strategies across its suite of brands, including the following:

Acceler8Success,  FranchiseReclaim,  OwnABizness.com,  Accelerate Success Coaching,  Your Entrepreneurial Success, and relaunching soon, Franchise Foundry.

By blending deep industry expertise with a dynamic content ecosystem, Acceler8Success Group fosters sustainable success and responsible leadership for today’s innovators and tomorrow’s legacy builders.