Being a former franchisor, and having franchised my company to get over 10 years before We sold it, it seems to me that I’d experienced in relation to possible scenario. Most people feel that franchising is really cut and dry; you have a operation agreement, people pay most people a certain amount to purchase their franchised outlet, and then they use the business or store for a 10 year term by means of automatic renewals.
That really doesn’t happen for franchising, and although franchising is an extremely successful feature for distributing goods, solutions, and products; it isn’t Disneyland. I doubt any industry really is.
Worse, the person wasn’t following the proper techniques which were part of a large fast account we had with a indigenous company. Again because he didn’t have to follow will be confidential operations manual, that he never read considering as he said; “I never signed nothing. inches Nor did he ever go to our franchisor training, which is also required in new managers which are going our franchised business model, if ever the owner is not involved in the day-to-day operations.
Yes, that sounds like a decent business model, then again nothing is ever as straightforward as it appears in the franchising industry. Let me explain. Over the years, I don’t think I ever had a perfect franchise sale the place everything went exactly appropriately; where the franchisee qualified meant for the loans very quickly, previously had a perfect resume, had a wonderful location, didn’t care to make sure you negotiate any terms with the franchise agreement, and all sorts of things went perfect during the 10 years they were in business prior to vitality.
I explained to him which usually he had to run the business an unusual way, and he talked about that I was wrong, since he didn’t sign any kind of agreement, and he would definitely do it his way. Oh great I thought, right now I have a rogue franchisee on my hands, and they are not keeping with the consistency of our brand name.
You see, in the franchise binding agreement there are stipulations before you copy the business to someone else, the new franchisee has to then hint 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 instructions, he had made quite a few shifts.
This is a serious issue, and it happens more often than people realize. Franchisors need to demand that the proper procedures are followed, in any other case you run into all sorts of circumstances. Please consider all this and think on.
Let me give you certainly a crazy thing that happened to us. We’d a franchisee who lived on the border of Ga and Alabama. We allowed them to have a joint property in both states. With the type of industry we participated in there were different rules on each side in the border.
One day, I occured to fill in for one of our area representatives in that section, 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 right now running the business, and your franchisee had transferred the business to him without authorization.