Like a former franchisor, and needing franchised my company for over 10 years before I just sold it, it seems to me that I’d experienced you can find 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 operate the business or store for any 10 year term with automatic renewals.
You see, in the franchise deal there are stipulations before you copy the business to someone else, the new franchisee has to then indicator 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 per our confidential operations instructions, he had made quite a few adjustments.
Worse, this individual wasn’t following the proper techniques which were part of a large fast account we had with a indigenous company. Again because this individual didn’t have to follow are confidential operations manual, which he never read because 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 running our franchised business model, if the owner is not involved in the day-to-day operations.
One day, I materialized to fill in for one of our area representatives in that location, and I went to go to the franchisee on the Georgia aspect. When I got there, I was talking to his brother-in-law. Apparently he was nowadays running the business, and some of our franchisee had transferred the market to him without authorization.
Yes, which usually sounds like a decent business model, then again nothing is ever as simple 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 everything went exactly perfectly; where the franchisee qualified designed for the loans very quickly, possessed a perfect resume, had a wonderful location, didn’t care to help you negotiate any terms for the franchise agreement, and every thing went perfect during the several years they were in business prior to reconstruction.
Let me give you an illustration of this a crazy thing that happened to us. There were a franchisee who resided on the border of Georgia and Alabama. We allowed them to have a joint location in both states. As a consequence of type of industry we took part in in there were different rules and regulations on each side for the border.
This is a serious issue, and it happens more often 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.
That really doesn’t happen with franchising, and although franchising is an extremely successful business model for distributing goods, services, and products; it isn’t Disneyland. I doubt any industry really is.
I explained to him which usually he had to run the business a clear way, and he said that I was wrong, because he didn’t sign any agreement, and he would definitely do it his way. Oh great I thought, nowadays I have a rogue franchisee on my hands, and maybe they are not keeping with the consistency of our brand name.