Unfortunately, not every business succeeds. Circumstances change, unexpected events occur, and sometimes a franchisee finds themselves in a position where the business is no longer working as planned.

Over the years we have seen situations where, despite the best efforts of both the franchisee and the Support Office, a business has continued to decline. Turnover reduces, machines remain in storage rather than on profitable sites, and the business can enter a downward spiral that becomes increasingly difficult to reverse.

If you ever find yourself in this situation, please don’t struggle in silence. Contact the Support Office as early as possible. The earlier we become involved, the more options we have to help. We can often assist with reviewing your business, identifying opportunities, reducing costs, improving site performance, or developing an action plan to get things back on track.

However, there are occasions where the best outcome is to help a franchisee exit the business in an orderly and professional manner.

One advantage of the Kiwikrane franchise model is that your investment is largely represented by physical assets—the machines themselves. Unlike many businesses where goodwill may become worthless, your machines continue to retain value.

The Franchise Agreement allows Kiwikrane to repurchase machines in certain circumstances. In addition, where appropriate and with your cooperation, the franchisor may make an offer to purchase your machines to assist you in exiting the business.

While this is unlikely to recover your full investment, it can often result in a significantly better outcome than allowing the business to continue deteriorating. If the business has been financed, you may still have loans to repay after the sale of the machines. Unfortunately, this can occur in any business where borrowed funds have been used to purchase assets.

The important thing is to keep communicating. Ignoring the problem or hoping it will resolve itself rarely improves the situation. We are committed to working with franchisees to find the best possible outcome, whatever that may be.

Ultimately, the success of your franchise depends on your commitment, effort, and business decisions. Our role as franchisor is to provide the systems, support, and guidance to help you succeed—but the day-to-day operation and performance of the business remains your responsibility.