I was quoted in this article from The Street entitled, “When The Parent Company Drags You Down“. The article discusses the financial woes of some franchises including Quiznos and the impact on franchisees.
If your a franchisee caught in a system experiencing financial problems, my first piece of advice is to carefully review the terms of your franchise agreement to make sure the franchisor is meeting its obligations to you. Another expert quoted in the article encourages franchisees to organize and band together. Banding together can enable franchisees to gather information and gives leverage and bargaining power with the franchisor, vendors and suppliers and even help with trademark rights, said Brian Miller, CEO of The Entrepreneur’s Source.
If your franchisor is experiencing serious financial issues, it’s also prudent to speak with a franchise attorney to get an understanding of your rights.