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Being a former franchisor, and developing franchised my company for over 10 years before I actually sold it, it seems for me that I’d experienced in relation to possible scenario. Most people think that franchising is really cut and dry; you have a operation agreement, people pay you will a certain amount to purchase their franchised outlet, and then they get the job done the business or store for any 10 year term by means of automatic renewals.
This is a serious issue, and it happens again than people realize. Franchisors need to demand that the the right procedures are followed, also you run into all sorts of scenarios. Please consider all this and think on.
Worse, this individual wasn’t following the proper types of procedures which were part of a large fast account we had with a nationwide company. Again because he didn’t have to follow are actually confidential operations manual, which he never read because as he said; “I never signed nothing. inches Nor did he truly go to our franchisor schooling, which is also required from new managers which are sprinting our franchised business model, in the event the owner is not involved in the day-to-day operations.
Yes, which usually 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 endured a perfect franchise sale where everything went exactly appropriately; where the franchisee qualified meant for the loans very quickly, possessed a perfect resume, had a perfect location, didn’t care to help you negotiate any terms with the franchise agreement, and all sorts of things went perfect during the several years they were in business prior to reconstruction.
One day, I materialized to fill in for one of our area representatives in that region, and I went to visit the franchisee on the Georgia part. When I got there, I just was talking to his brother-in-law. Apparently he was now running the business, and some of our franchisee had transferred this company to him without agreement.
Let me give you a good example of a crazy thing that happened to us. There were a franchisee who resided on the border of Ga and Alabama. We allowed them to have a joint sales area in both states. As a consequence of type of industry we took part in in there were different regulations on each side of the border.
You see, in the franchise deal there are stipulations before you transfer the business to someone else, the popular franchisee has to then hint 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 as per our confidential operations guidebook, he had made quite a few changes.
That really doesn’t happen with franchising, and although franchising is an extremely successful business model for distributing goods, assistance, and products; it isn’t Disneyland. I doubt any industry really is.
I explained to him the fact that he had to run the business a certain way, and he proclaimed that I was wrong, since he didn’t sign any agreement, and he would do it his way. Wow great I thought, today I have a rogue franchisee on my hands, and maybe they are not keeping with the steadiness of our brand name.