Being a former franchisor, and having franchised my company to get over 10 years before I just sold it, it seems in my opinion that I’d experienced you can find possible scenario. Most people think that franchising is really cut and dry; you have a franchise agreement, people pay most people 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.
I explained to him the fact that he had to run the business an unusual way, and he proclaimed that I was wrong, since he didn’t sign any kind of agreement, and he would do it his way. Also great I thought, today I have a rogue franchisee on my hands, and they’re not keeping with the consistency of our brand name.
Let me give you an illustration of this a crazy thing the fact that happened to us. We’d a franchisee who been around on the border of Ga and Alabama. We allowed them to have a joint property in both states. As a consequence of type of industry we was in there were different rules and regulations on each side with the border.
Yes, that sounds like a decent business model, nonetheless nothing is ever as straight forward as it appears in the franchising industry. Let me explain. Over time, I don’t think I ever had a perfect franchise sale the place everything went exactly appropriately; where the franchisee qualified designed for the loans very quickly, previously had a perfect resume, had a superb location, didn’t care to make sure you negotiate any terms for the franchise agreement, and almost everything went perfect during the several years they were in business prior to vitality.
This is a serious issue, and it happens again than people realize. Franchisors need to demand that the the right procedures are followed, otherwise you run into all sorts of situations. Please consider all this and think on.
That really doesn’t happen during franchising, and although franchising is an extremely successful business design for distributing goods, assistance, and products; it isn’t Disneyland. I doubt any organization really is.
Worse, he wasn’t following the proper measures which were part of a large fleet account we had with a nationwide company. Again because the person didn’t have to follow are confidential operations manual, which inturn he never read since as he said; “I never signed nothing. inch Nor did he ever go to our franchisor teaching, 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.
One day, I occured to fill in for one of the area representatives in that section, and I went to go to the franchisee on the Georgia part. When I got there, I just was talking to his brother-in-law. Apparently he was right now running the business, and our franchisee had transferred the market to him without acceptance.
You see, in the franchise arrangement there are stipulations before you switch the business to someone else, the popular 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 per our confidential operations manual, he had made quite a few improvements.