To be a former franchisor, and needing franchised my company to get over 10 years before We sold it, it seems opinion that I’d experienced just about every possible scenario. Most people believe franchising is really cut and dry; you have a team 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 a 10 year term by means of automatic renewals.
One day, I occured to fill in for one our area representatives in that vicinity, and I went to go to the franchisee on the Georgia area. When I got there, We were talking to his brother-in-law. Apparently he was right now running the business, and your franchisee had transferred this company to him without agreement.
I explained to him who he had to run the business a particular way, and he proclaimed that I was wrong, since he didn’t sign any agreement, and he was going to do it his way. Also great I thought, nowadays I have a rogue franchisee on my hands, and maybe they are not keeping with the steadiness of our brand name.
That really doesn’t happen during franchising, and although franchising is an extremely successful business model for distributing goods, solutions, and products; it isn’t Disneyland. I doubt any online business really is.
Yes, who sounds like a decent business model, however 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 correctly; where the franchisee qualified for the loans very quickly, had a perfect resume, had an appropriate location, didn’t care to make sure you negotiate any terms of 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 more often than people realize. Franchisors need to demand that the correct procedures are followed, otherwise you run into all sorts of instances. Please consider all this and think on.
Worse, the guy wasn’t following the proper measures which were part of a large fast 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. inches Nor did he ever go to our franchisor schooling, which is also required from new managers which are running our franchised business model, in the event the owner is not involved in the day-to-day operations.
Let me give you a good example of a crazy thing that happened to us. We had a franchisee who enjoyed on the border of Georgia and Alabama. We allowed them to have a joint sales area in both states. With the type of industry we was in there were different rules and regulations on each side for the border.
You see, in the franchise agreement there are stipulations before you copy the business to someone else, the fresh franchisee has to then indicator 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 as per our confidential operations manual, he had made quite a few changes.