Being a former franchisor, and needing franchised my company designed for over 10 years before We sold it, it seems opinion that I’d experienced concerning possible scenario. Most people believe franchising is really cut and dry; you have a team agreement, people pay you will a certain amount to purchase their franchised outlet, and then they get the job done the business or store for a 10 year term by means of automatic renewals.
This is a serious issue, and it happens more often than people realize. Franchisors need to demand that the appropriate procedures are followed, otherwise you run into all sorts of circumstances. Please consider all this and think on.
That really doesn’t happen for franchising, and although franchising is an extremely successful business design for distributing goods, services, and products; it isn’t Disneyland. I doubt any business really is.
I explained to him who he had to run the business a particular way, and he said that I was wrong, because he didn’t sign any sort of agreement, and he would definitely do it his way. Oh yeah great I thought, right now I have a rogue franchisee on my hands, and they’re not keeping with the uniformity of our brand name.
Let me give you certainly a crazy thing which usually happened to us. We a franchisee who resided on the border of Ga and Alabama. We allowed them to have a joint location in both states. Due to the type of industry we was in there were different regulations on each side with the border.
One day, I appeared to fill in for one your area representatives in that region, and I went to visit the franchisee on the Georgia area. When I got there, I actually was talking to his brother-in-law. Apparently he was nowadays running the business, and your franchisee had transferred the market to him without endorsement.
Yes, which usually sounds like a decent business model, nevertheless nothing is ever as simple as it appears in the franchising industry. Let me explain. Over time, I don’t think I ever endured a perfect franchise sale where everything went exactly correctly; where the franchisee qualified meant for the loans very quickly, possessed a perfect resume, had a wonderful location, didn’t care to negotiate any terms in the franchise agreement, and all sorts of things went perfect during the 10 years they were in business prior to reconstruction.
Worse, he wasn’t following the proper techniques which were part of a large fast account we had with a indigenous company. Again because the guy didn’t have to follow are confidential operations manual, of which he never read since as he said; “I never signed nothing. inches Nor did he truly go to our franchisor teaching, which is also required from new managers which are functioning our franchised business model, if ever the owner is not involved in the day-to-day operations.
You see, in the franchise binding agreement there are stipulations before you copy the business to someone else, the new franchisee has to then sign the latest franchise agreement, and they have to be approved by the franchisor. It turned out the brother-in-law was not running the business down to our confidential operations manual, he had made quite a few changes.
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