Blog

Being a former franchisor, and needing franchised my company to get over 10 years before I sold it, it seems to me that I’d experienced concerning possible scenario. Most people believe franchising is really cut and dry; you have a franchise agreement, people pay you a certain amount to purchase their franchised outlet, and then they use the business or store for any 10 year term with automatic renewals.

This is a serious issue, and it happens more often than people realize. Franchisors need to demand that the the right procedures are followed, in any other case you run into all sorts of situations. Please consider all this and think on.

One day, I happened to fill in for one of the area representatives in that vicinity, and I went to visit the franchisee on the Georgia aspect. When I got there, I was talking to his brother-in-law. Apparently he was now running the business, and this franchisee had transferred the business enterprise to him without authorization.

Worse, the person wasn’t following the proper techniques which were part of a large navy account we had with a nationwide company. Again because he didn’t have to follow will be confidential operations manual, of which he never read simply because as he said; “I never signed nothing. inches Nor did he at any time go to our franchisor training, which is also required of new managers which are running our franchised business model, if the owner is not involved in the day-to-day operations.

Yes, that sounds like a decent business model, nevertheless nothing is ever as simple as it appears in the franchising industry. Let me explain. Progressively, I don’t think I ever endured a perfect franchise sale where everything went exactly perfectly; where the franchisee qualified designed for the loans very quickly, previously had a perfect resume, had a perfect location, didn’t care to help you negotiate any terms of the franchise agreement, and almost everything went perfect during the a decade’s they were in business prior to reconstruction.

That really doesn’t happen for franchising, and although franchising is an extremely successful business design for distributing goods, offerings, and products; it isn’t Disneyland. I doubt any business really is.

I explained to him who he had to run the business a clear way, and he said that I was wrong, simply because he didn’t sign any agreement, and he would do it his way. Oh yeah great I thought, now I have a rogue franchisee on my hands, and they are not keeping with the consistency of our brand name.

Let me give you an example of a crazy thing that happened to us. We had a franchisee who enjoyed on the border of Atlanta and Alabama. We allowed them to have a joint territory in both states. Due to the type of industry we took part in there were different rules and regulations on each side in the border.

You see, in the franchise arrangement there are stipulations before you transfer the business to someone else, the popular franchisee has to then sign the latest franchise agreement, plus they have to be approved by the franchisor. It turned out the brother-in-law was not running the business much like our confidential operations manual, he had made quite a few adjustments.

Examine more:http://sandpodchauli.bcz.com