Franchise models offer entrepreneurs turnkey, proven business models complete with business plans, projections, marketing strategies and buildout project management. Despite proven success, however, not all models work in all areas. Even the most well-known franchises see a percentage of their locations fail to perform.
In these situations, the franchisee often faces a five- or ten-year franchise agreement they can no longer sustain. Between required buildout, compliance and royalty payments, there is often little breathing room if things don’t work out as planned.
Second Wind has worked with franchisees and franchisors across a variety of industries. Our reorganizational strategies preserve the underlying value of the distressed business and find a resolution that is in the best interest of both parties: namely, preservation of the location. Once it’s understood that the goal is to preserve the operation and protect the brand, we are able to negotiate with franchisors to modify, terminate or settle outstanding franchise agreements.