Master Franchisee Organisation
Our Client - the Master Franchisee Organisation - with own retail outlets and an own training centre had been loss leading for more than four years in a row. This created strong demand from the shareholders for a rapid change.
TCG was asked to provide an Interim Manager to restructure the existing organisation in such a way that rapid improvement of results was achieved.
Targets were:
- profit to be realised in the Master Franchisee Organisation as well as in the Retail Outlets,
- to attract additional franchisees so that the network could be expanded,
- to solve existing cash flow issues,
- legal and tax issues to be a thing of the past,
- inventory shortages and issues no longer to be an issue,
- utilize properly the available Training Centre.
And the results were:
Within a period of six months TCG installed a new Management Team that exercised hands-on approach without bias to the company‘s past operations and mistakes. Management functions were redefined and clearly formulated. Through weekly meetings the progress was measured against the action plan to achieve the objectives of the shareholders.
TCG created new operational and financial procedures that dramatically reduced inventory without the risk of running out of stock. The cash flow returned into the black due to a consistent enforcement of newly installed policies for dealing with non or late payers.
Specific training & communication programs were implemented that increased efficiency of the retail outlets and utilization of the training centre. Due to the implemented changes the number of customers in the outlets and their satisfaction increased, resulting in the outlets' higher profitability.
In a joint effort with external legal and tax consultants, all outstanding legal and taxation matters were resolved.
After 6 months of cleaning and restructuring the organization and operations the Master Franchisee Organisation the revitalised company was transferred to the new management. As the day-to-day operations ran smoothly and started generating profits attraction of a new CEO oriented towards expanding the business was recommended.