To be a former franchisor, and developing franchised my company to get over 10 years before I just sold it, it seems for me that I’d experienced you can find possible scenario. Most people reckon that 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 get the job done the business or store for the 10 year term with automatic renewals.
You see, in the franchise binding agreement there are stipulations before you copy the business to someone else, the brand new franchisee has to then hint the latest franchise agreement, and have to be approved by the franchisor. It turned out the brother-in-law was not running the business down to our confidential operations guidebook, he had made quite a few changes.
I explained to him which usually he had to run the business a clear way, and he said that I was wrong, simply because he didn’t sign any kind of agreement, and he would do it his way. Oh yeah great I thought, nowadays I have a rogue franchisee on my hands, and they are not keeping with the regularity of our brand name.
That really doesn’t happen with franchising, and although franchising is an extremely successful business model for distributing goods, solutions, and products; it isn’t Disneyland. I doubt any online business really is.
This is a serious concern, and it happens usually than people realize. Franchisors need to demand that the appropriate procedures are followed, otherwise 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 area. When I got there, I just was talking to his brother-in-law. Apparently he was today running the business, and your franchisee had transferred the market to him without agreement.
Worse, the guy wasn’t following the proper techniques which were part of a large navy account we had with a indigenous company. Again because the guy didn’t have to follow will be confidential operations manual, of which he never read because as he said; “I never signed nothing. inches Nor did he truly go to our franchisor schooling, which is also required of new managers which are going our franchised business model, in the event the owner is not involved in the day-to-day operations.
Yes, which usually sounds like a decent business model, nonetheless 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 properly; where the franchisee qualified to get the loans very quickly, experienced a perfect resume, had a perfect location, didn’t care to make sure you negotiate any terms of the franchise agreement, and every thing went perfect during the 10 years they were in business prior to reconstruction.
Let me give you an illustration of this a crazy thing that happened to us. We’d a franchisee who enjoyed on the border of Ga and Alabama. We allowed them to have a joint property in both states. Due to the type of industry we was in there were different foibles on each side of the border.
Facts:http://vconnect4u.com