Being a former franchisor, and developing franchised my company meant for over 10 years before We sold it, it seems in my opinion that I’d experienced in relation to 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 run the business or store to get a 10 year term with automatic renewals.
You see, in the franchise deal there are stipulations before you transfer the business to someone else, the fresh franchisee has to then hint the latest franchise agreement, and in addition they have to be approved by the franchisor. It turned out the brother-in-law was not running the business per our confidential operations information, he had made quite a few improvements.
Let me give you a good example of a crazy thing which usually happened to us. We’d a franchisee who resided on the border of Atlanta and Alabama. We allowed them to have a joint location in both states. Due to the type of industry we was in there were different rules on each side in the border.
I explained to him who he had to run the business a clear way, and he proclaimed that I was wrong, since he didn’t sign any sort of agreement, and he would do it his way. Oh great I thought, today I have a rogue franchisee on my hands, and they are not keeping with the uniformity of our brand name.
Yes, who sounds like a decent business model, then again nothing is ever as basic as it appears in the franchising industry. Let me explain. Through the years, I don’t think I ever endured a perfect franchise sale where by everything went exactly properly; where the franchisee qualified designed for the loans very quickly, experienced a perfect resume, had a wonderful location, didn’t care to make sure you negotiate any terms of the franchise agreement, and almost everything went perfect during the 10 years they were in business prior to renewal.
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, also you run into all sorts of instances. Please consider all this and think on.
That really doesn’t happen during franchising, and although franchising is an extremely successful business model for distributing goods, services, and products; it isn’t Disneyland. I doubt any online business really is.
One day, I materialized to fill in for one your area representatives in that region, and I went to visit the franchisee on the Georgia side. When I got there, We were talking to his brother-in-law. Apparently he was nowadays running the business, and this franchisee had transferred the market to him without agreement.
Worse, this individual wasn’t following the proper types of procedures which were part of a large fleet account we had with a indigenous company. Again because the person didn’t have to follow are confidential operations manual, that he never read considering as he said; “I never signed nothing. inch Nor did he at any time go to our franchisor training, which is also required from new managers which are functioning our franchised business model, in case the owner is not involved in the day-to-day operations.