New Framework Diagnoses Franchise Unit Underperformance with 90-Day Intervention Plan

Brazilian franchise operations expert Bruna Godoy has introduced a new framework to diagnose underperforming franchise units, moving beyond the conventional approach of simply boosting sales or marketing. Her article, published in the International Journal of Engineering Technology Research & Management (IJETRM), proposes the Franchise Recovery Diagnostic Matrix, which evaluates four key domains: economic viability, commercial engine, operating discipline, and leadership capability. This matrix helps identify whether a unit's struggles stem from structural cost issues, weak lead generation, inconsistent execution, or management shortcomings.

The framework includes a 90-day structured intervention plan divided into three phases: diagnosis and stabilization, execution and capability development, and validation and strategic decision-making. This period is not a guarantee of recovery but a structured timeline to gather evidence and determine the best course of action, whether that be continued support, restructuring, or exit. The model emphasizes distinguishing temporary performance improvements from verified, sustainable recovery.

Godoy's work, which follows her earlier paper on data-driven franchise governance, underscores the importance of targeted diagnosis over generic responses. By providing a systematic approach to address underperformance, this framework offers franchisors and multi-unit operators a practical tool to improve decision-making and resource allocation, potentially saving viable units and efficiently closing others.