News & Insights
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By Steven Kramer
Q: What management problems do you see with multi-unit franchise ownership?
With multi-unit franchising scenarios, franchisors will often reduce the fees and royalties for the franchisee, who can also save further money by employing fewer ‘back-of-house’ managers to oversee operations—but while such an arrangement is certainly economically efficient, it can lead to significant hurdles in streamlining communications between the franchisee and the various store managers, shift supervisors and crew members. It’s easy for the lines to get crossed.