Red Rooster management terminates franchisee after failing to meet standards

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Inside Franchise Business: Red Rooster management terminates agreement after franchisee fails to meet standardsA Red Rooster restaurant in Springvale was closed by management on Friday after the franchisee failed to meet the standards required to operate under the brand.

The closure follows a 12-month undertaking between Red Rooster management and the franchisee to improve a number of issues identified in-store, with Red Rooster CEO Nick Keenan acknowledging that while there had been improvements, they had not been continuous.

“In this instance we have specifically worked with the franchise partner for 12 months to remedy a number of issues in this restaurant. Although there were operational improvements, they were not continuous, and the restaurant did not reach the standards that we pride ourselves on,” Keenan said.

“In the unfortunate event that a franchisee continues to disregard operational guidelines, we will take the necessary action and terminate the franchise agreement. As a result, we have taken the step to end the ownership of this restaurant by the former franchisee.”

The restaurant will now come under the management of Red Rooster, and following a minor refresh and renovation, will reopen in the next seven to ten days.

All existing Springvale team members will retain their positions at the store with Red Rooster facilitating additional training sessions to ensure store standards are upheld.

“We would like to confirm that all existing team members have been offered jobs with Red Rooster and their continual service will be honoured,” Keenan said.

The QSR brand operates 350 restaurants nationally, employing over 9500 Australians and has a dedicated operations team to support the brand’s network of 190 individual business owners.

In cases such as this, where a franchisee fails to meet the high standards of operation, Keenan confirmed that it was in the best interests of Red Rooster management and the wider network to remove them.

“We pride ourselves on working with our franchise partners to build successful businesses across the country and work on action plans together and offer support in times of stress,” Keenan said.

“In the unfortunate event that a franchise partner does not participate in rectifying issues raised, we will look at ways to exit them from our network.”

Red Rooster confirmed that while the Springvale restaurant is closed, customers will still be able to order from surrounding restaurants in Springvale South, Oakleigh South, Notting Hill and Dandenong North.

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