What to Do When a Franchisee Isn’t Performing: A Tactical Playbook
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If you’re dealing with underperformance in your system right now, don’t wait and hope it fixes itself.
Book your free Franchise Growth Strategy Call at guycoffey.com.
We’ll assess what’s really happening, build a support and accountability plan, and decide the smartest next move to protect your brand and your energy.
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Every franchisor will face this moment: a franchisee who isn’t performing. Sales stall. Morale drops. Other franchisees start watching closely to see what you’ll do next.
In this solo, tactical episode, I walk through the exact 7-step playbook I use to diagnose underperformance, support franchisees the right way, and protect the brand when tough decisions need to be made. Underperformance is inevitable. What matters is how fast and how intentionally you respond.
Key Takeaways
- Why every franchise system has a bottom 10–20% of performers
- How ignoring underperformance can poison your entire brand
- The 3 E’s framework: effort, execution, or economics
- How to structure a performance improvement plan that actually works
- Why expectations must be objective, time-bound, and documented
- How to balance empathy with brand standards
- When exits, transfers, or closures are the healthiest option
Time Stamps
00:00 Introduction: The Franchisee Performance Dilemma
00:36 Understanding Underperformance
00:53 The Franchise Scaleup Show: Your Guide to Success
01:24 Episode Overview: Tackling Underperformance
01:56 Reality Check: Accepting Underperformance
02:12 Diagnosis: Identifying the Root Cause
02:42 Support Plan: Building a Path to Improvement
03:28 Setting Clear Expectations
04:00 Accountability with Heart
04:31 Knowing When to Exit
04:54 Mindset Reset: Embracing Tough Decisions
05:11 Tactical Takeaways and Conclusion
Connect with Guy Coffey:
LinkedIn: www.linkedin.com/in/guycoffey
Website: www.guycoffey.com
Instagram: @guycoffey
YouTube: @guycoffey