Being a former franchisor, and developing franchised my company for over 10 years before I actually sold it, it seems opinion that I’d experienced just about every possible scenario. Most people reckon that franchising is really cut and dry; you have a business agreement, people pay you a certain amount to purchase their franchised outlet, and then they use the business or store for any 10 year term by means of automatic renewals.
Worse, the guy wasn’t following the proper types of procedures which were part of a large fleet account we had with a national company. Again because the person didn’t have to follow are actually confidential operations manual, which inturn he never read since as he said; “I never signed nothing. inches Nor did he ever before go to our franchisor schooling, which is also required in new managers which are going our franchised business model, in the event the owner is not involved in the day-to-day operations.
I explained to him the fact that he had to run the business a particular way, and he stated that I was wrong, since he didn’t sign any kind of agreement, and he was going to do it his way. Also great I thought, now I have a rogue franchisee on my hands, and maybe they are not keeping with the uniformity of our brand name.
This is a serious issue, and it happens on a regular basis than people realize. Franchisors need to demand that the appropriate procedures are followed, otherwise you run into all sorts of circumstances. Please consider all this and think on.
Yes, the fact that sounds like a decent business model, however nothing is ever as straightforward as it appears in the franchising industry. Let me explain. Over time, I don’t think I ever endured a perfect franchise sale when everything went exactly properly; where the franchisee qualified designed for the loans very quickly, had a perfect resume, had a superb location, didn’t care to help you negotiate any terms of the franchise agreement, and almost everything went perfect during the a decade’s they were in business prior to repair.
That really doesn’t happen for franchising, and although franchising is an extremely successful business structure for distributing goods, solutions, and products; it isn’t Disneyland. I doubt any industry really is.
You see, in the franchise deal there are stipulations before you transfer the business to someone else, the new franchisee has to then signal the latest franchise agreement, plus they 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.
Let me give you an illustration of this a crazy thing who happened to us. There were a franchisee who enjoyed on the border of Atlanta and Alabama. We allowed them to have a joint property in both states. As a result of type of industry we was in there were different regulations on each side with the border.
One day, I occured to fill in for one our area representatives in that section, 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 our franchisee had transferred the business enterprise to him without acceptance.