The Dangers of Treating District Managers as a Cost Center

The Dangers of Treating District Managers as a Cost Center

Not extended back, I met a regional director. To increase his base line, he was taking into consideration reducing down district administrators to a single particular person to oversee 50 franchisees. My suggestion to him was not to bother handling the suppliers at all at that stage.

When will retail networks fully grasp that district management is not a aid operate, a mere expense heart that should be decreased at all fees?

By chopping the amount of district professionals, we restrict the means of the franchisor to assist, have an understanding of and resolve the complications of franchisees right before they turn into really serious. It is effective nicely for 18 months, then the community begins to falter as dissatisfaction grows and the quantities drop.

Conversely, a perfectly-run network signifies franchisees who be successful and who are happier. In other phrases: fewer exits and greater very same-retailer product sales.

But to accomplish this, district professionals should be able to acquire time to have an understanding of, listen and create relationships with each individual of their franchise associates. Have you at any time attempted to bond with 50 individuals at at the time?

In my view, embarking on a procedure of price tag reduction as a result of district administration means aiming for short-time period get, even if it means prolonged term ache. This is only “good” if you want to promote your network speedily, without qualms for the franchisees who have trusted you and have been engaged for quite a few years.

What do you feel ?

Julien Perret is the Founder and CEO of BCHEF and Initial Burgers. This article was translated and posted below from an primary post on LinkedIn, with his permission.