Being a former franchisor, and needing franchised my company meant for over 10 years before We sold it, it seems for me that I’d experienced just about every possible scenario. Most people believe franchising is really cut and dry; you have a operation agreement, people pay you a certain amount to purchase their franchised outlet, and then they get the job done the business or store for the 10 year term by means of automatic renewals.
One day, I appeared to fill in for one of the area representatives in that region, and I went to go to the franchisee on the Georgia part. When I got there, I actually was talking to his brother-in-law. Apparently he was today running the business, and our franchisee had transferred the market to him without acceptance.
You see, in the franchise arrangement there are stipulations before you copy the business to someone else, the brand new franchisee has to then sign the latest franchise agreement, and have to be approved by the franchisor. It turned out the brother-in-law was not running the business much like our confidential operations guidebook, he had made quite a few shifts.
I explained to him who he had to run the business a certain way, and he said that I was wrong, because he didn’t sign whatever agreement, and he would do it his way. Oh great I thought, right now I have a rogue franchisee on my hands, and they’re not keeping with the uniformity of our brand name.
This is a serious issue, and it happens usually 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.
Yes, which usually sounds like a decent business model, nevertheless nothing is ever as straight forward as it appears in the franchising industry. Let me explain. Over the years, I don’t think I ever had a perfect franchise sale where by everything went exactly properly; where the franchisee qualified to get 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 everything went perfect during the a decade’s they were in business prior to repair.
Worse, this individual wasn’t following the proper techniques which were part of a large fleet account we had with a national company. Again because the guy didn’t have to follow are confidential operations manual, which he never read simply because as he said; “I never signed nothing. ” Nor did he at any time go to our franchisor workout, which is also required from new managers which are functioning 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 which usually happened to us. We’d a franchisee who resided on the border of Georgia and Alabama. We allowed them to have a joint property in both states. As a consequence of type of industry we was in there were different regulations on each side of the border.
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 organization really is.