Like a former franchisor, and having franchised my company meant for over 10 years before We sold it, it seems opinion that I’d experienced in relation to possible scenario. Most people think 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 use the business or store for a 10 year term with automatic renewals.
This is a serious concern, and it happens on a regular basis than people realize. Franchisors need to demand that the proper procedures are followed, in any other case you run into all sorts of circumstances. Please consider all this and think on.
I explained to him that he had to run the business a particular way, and he talked about that I was wrong, considering he didn’t sign whatever agreement, and he was going to do it his way. Also great I thought, nowadays 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 the fact that happened to us. We had a franchisee who enjoyed on the border of Ga and Alabama. We allowed them to have a joint sales area in both states. As a result of type of industry we participated in there were different rules on each side for the border.
That really doesn’t happen for franchising, and although franchising is an extremely successful business structure for distributing goods, assistance, and products; it isn’t Disneyland. I doubt any online business really is.
You see, in the franchise binding agreement there are stipulations before you copy the business to someone else, the fresh 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 improvements.
Yes, which usually sounds like a decent business model, however nothing is ever as straight forward 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 designed for the loans very quickly, previously had a perfect resume, had an appropriate location, didn’t care to help you negotiate any terms in the franchise agreement, and everything went perfect during the decade they were in business prior to repair.
One day, I happened to fill in for one of our area representatives in that vicinity, and I went to visit the franchisee on the Georgia part. When I got there, We were talking to his brother-in-law. Apparently he was nowadays running the business, and your franchisee had transferred the market to him without endorsement.
Worse, this individual wasn’t following the proper techniques which were part of a large navy account we had with a national company. Again because the guy didn’t have to follow are actually confidential operations manual, which inturn he never read simply because as he said; “I never signed nothing. ” Nor did he ever go to our franchisor teaching, which is also required from new managers which are functioning our franchised business model, if the owner is not involved in the day-to-day operations.