Like a former franchisor, and having franchised my company meant for over 10 years before I actually 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 franchise agreement, people pay you will a certain amount to purchase their franchised outlet, and then they get the job done the business or store to get a 10 year term with automatic renewals.
Worse, the person wasn’t following the proper techniques which were part of a large fleet account we had with a domestic company. Again because he didn’t have to follow are actually confidential operations manual, which he never read considering 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 going our franchised business model, if the owner is not involved in the day-to-day operations.
Let me give you an example of a crazy thing who happened to us. We a franchisee who enjoyed on the border of Ga and Alabama. We allowed them to have a joint location in both states. As a consequence of type of industry we was in there were different foibles on each side for the border.
One day, I happened to fill in for one of our area representatives in that vicinity, 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 your franchisee had transferred the business enterprise to him without authorization.
I explained to him who he had to run the business a particular way, and he talked about that I was wrong, since he didn’t sign whatever agreement, and he was going to do it his way. Oh great I thought, now I have a rogue franchisee on my hands, plus they are not keeping with the steadiness of our brand name.
That really doesn’t happen for franchising, and although franchising is an extremely successful business model for distributing goods, offerings, and products; it isn’t Disneyland. I doubt any organization really is.
Yes, which usually sounds like a decent business model, nevertheless nothing is ever as basic as it appears in the franchising industry. Let me explain. Over time, I don’t think I ever had a perfect franchise sale where by everything went exactly perfectly; where the franchisee qualified designed for the loans very quickly, had a perfect resume, had an appropriate location, didn’t care to help you negotiate any terms for the franchise agreement, and every thing went perfect during the a decade’s they were in business prior to repair.
This is a serious concern, and it happens usually than people realize. Franchisors need to demand that the proper procedures are followed, usually you run into all sorts of circumstances. Please consider all this and think on.
You see, in the franchise arrangement there are stipulations before you transfer the business to someone else, the new franchisee has to then signal 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 instructions, he had made quite a few changes.