How do you communicate with your employees, suppliers, and customers about franchise termination?

1 Check the contract

Before you announce your decision to end the franchise relationship, you need to review the contract and understand your rights and obligations. The contract should specify the grounds, procedures, and consequences of termination, as well as any notice period, fees, or penalties. You should also consult a lawyer to avoid any legal disputes or liabilities.

2 Inform your employees

Your employees are the backbone of your business, and they deserve to know the truth about the franchise termination. You should inform them as soon as possible, preferably in person or in a video call. Explain the reasons for the termination, the timeline, and the impact on their jobs. Be honest, respectful, and supportive, and answer any questions they may have. You should also provide them with any severance pay, benefits, or references they are entitled to.

3 Notify your suppliers

Your suppliers are your partners in delivering quality products and services to your customers, and they need to be aware of the changes in your business. You should notify them in writing, following the contract terms and the notice period. You should also settle any outstanding invoices, orders, or deliveries, and return any leased or borrowed equipment. Thank them for their cooperation and maintain a good relationship with them.

4 Communicate with your customers

Your customers are the reason why you are in business, and they need to be informed of the franchise termination and how it affects them. You should communicate with them through various channels, such as email, social media, website, or signage. You should also offer them any alternatives, such as referrals, discounts, or vouchers, to retain their loyalty and satisfaction. Apologize for any inconvenience and express your gratitude for their support.

5 Follow the guidelines

Depending on the nature and scope of your franchise business, you may need to follow some specific guidelines or regulations when terminating a franchise agreement. For example, you may need to comply with the Franchising Code of Conduct, the Australian Consumer Law, or the Fair Work Act. You should also respect the intellectual property rights of the franchisor or the franchisee, and remove any signs, logos, or trademarks that belong to them.

6 Learn from the experience

Terminating a franchise agreement can be a difficult and stressful process, but it can also be an opportunity to learn and grow. You should evaluate the reasons why the franchise did not work out, and identify any strengths, weaknesses, opportunities, or threats. You should also seek feedback from your employees, suppliers, and customers, and use it to improve your business skills and strategies. You should also look for new opportunities and challenges that suit your goals and vision.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?