Keeping management teams in place, a problem exacerbated by the Internet, is a defined objective for franchise organizations. Some chains admit stores have not been built because management was too thinly stretched. We have markets with zero unemployment that cannot support expansion even when the markets beg for consumer attention. More problems of this nature are predicted. In this spandex tight labor pool, senior franchise managers are concerned with costly employee turnover.
Recent surveys show that store operators themselves cause much of the worker unrest.
The emotional and financial cost of chronic turnover is a huge drain on unit and system profits. Many times managers do not realize the root cause or what the costs are to rehire replacements. Some even believe turnover is inevitable. Moreover, the loss of managers is devastating to franchisees and franchisors alike. They must become a part of the partnership.