According to our friends at the Retail Doctor, on average around
75 per cent of shoppers who looked at your displays, entered your
shop or visited your website did not buy anything. Imagine if that
figure could be reduced to even 50 per cent. "Out of
stock" situations can account for up to 15 per cent of lost
sales, and "overstocked" situations can cost around 25
per cent in each dollar. Then of course there is the extra dollars
you could obtain from suppliers if you could give suppliers
guaranteed greater loyalty in purchasing. Fix all of these things
and the results go straight to the bottom line of franchisees and
franchisors.
These are business issues, but there is a legal aspect. In our
experience most of the lost dollars in a franchise network result
from failures in business compliance. The Franchise Agreement is
usually adequate, but the Franchise Manual rarely properly
facilitates improved business compliance. And in some cases it
contradicts the terms of
