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To be a former franchisor, and needing franchised my company meant for over 10 years before We sold it, it seems to me that I’d experienced you can find possible scenario. Most people believe franchising is really cut and dry; you have a business agreement, people pay you will a certain amount to purchase their franchised outlet, and then they use the business or store for a 10 year term by means of automatic renewals.
That really doesn’t happen for franchising, and although franchising is an extremely successful feature for distributing goods, offerings, and products; it isn’t Disneyland. I doubt any online business really is.
One day, I occured to fill in for one your area representatives in that location, and I went to go to the franchisee on the Georgia side. When I got there, I was talking to his brother-in-law. Apparently he was nowadays running the business, and some of our franchisee had transferred the business enterprise to him without acceptance.
You see, in the franchise binding agreement there are stipulations before you switch the business to someone else, the new franchisee has to then signal the latest franchise agreement, and have to be approved by the franchisor. It turned out the brother-in-law was not running the business much like our confidential operations guidebook, he had made quite a few changes.
Yes, who sounds like a decent business model, then again nothing is ever as straight forward as it appears in the franchising industry. Let me explain. Over the years, I don’t think I ever had a perfect franchise sale when everything went exactly appropriately; where the franchisee qualified meant for the loans very quickly, had a perfect resume, had an appropriate location, didn’t care to help you negotiate any terms in the franchise agreement, and almost everything went perfect during the decade they were in business prior to renewal.
This is a serious concern, and it happens usually than people realize. Franchisors need to demand that the appropriate procedures are followed, in any other case you run into all sorts of instances. Please consider all this and think on.
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 kind of agreement, and he would definitely do it his way. Oh yeah great I thought, nowadays I have a rogue franchisee on my hands, plus they are not keeping with the uniformity of our brand name.
Let me give you an example of a crazy thing which usually happened to us. There were a franchisee who resided 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 participated in there were different rules on each side of the border.
Worse, the person wasn’t following the proper types of procedures which were part of a large navy account we had with a domestic company. Again because the guy didn’t have to follow will be confidential operations manual, that he never read because as he said; “I never signed nothing. inch Nor did he truly go to our franchisor schooling, which is also required of new managers which are sprinting our franchised business model, if the owner is not involved in the day-to-day operations.
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