Declining sales and concern about corporate leadership are leading some franchisees to band together and speak out.
Chairman of the National Jack in the Box Franchise Association, Michael Norwich, said that franchisees put their heart and soul into the Jack and the Box brand, according to an article in QSR.
“[F]ranchisees are worried about the current direction of corporate leaders. Much of that is tied to declining sales: In November, Jack in the Box reported total quarterly sales of $177.5 million—a 23.5 percent year-over-year decline," the article said. "Norwich says Jack in the Box’s years-long transition from a restaurant operation company to an asset-light franchise company has been painful and franchisees worry corporate decisions are too focused on short-term metrics like stock performance and neglect the long-term health of the brand,” according to the article.
According to the article, Norwich maintained that a shift from a majority of locations being corporate-owned stores to franchisee-owned has contributed to some of the angst.
“There are so many things that have changed in the overall franchise business model over the last few years that it really necessitated strong franchisee associations more than ever now,” Norwich said.
Matthew Haller, SVP of government relations and public affairs at the International Franchise Association, says franchisee councils and associations are critical to the franchise model, according to the article. “But, he says, not all those groups are created equally, particularly recent ones birthed from controversy,” the article said.
Read the full article here.