Like a former franchisor, and developing franchised my company designed for over 10 years before I just sold it, it seems to me that I’d experienced concerning possible scenario. Most people feel that franchising is really cut and dry; you have a business agreement, people pay you 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 by means of automatic renewals.
That really doesn’t happen during franchising, and although franchising is an extremely successful business design for distributing goods, services, and products; it isn’t Disneyland. I doubt any business really is.
Yes, the fact that sounds like a decent business model, then again 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 a perfect location, didn’t care to make sure you negotiate any terms in the franchise agreement, and all sorts of things went perfect during the a decade’s they were in business prior to reconstruction.
This is a serious issue, and it happens usually than people realize. Franchisors need to demand that the correct procedures are followed, usually you run into all sorts of circumstances. Please consider all this and think on.
You see, in the franchise deal there are stipulations before you switch the business to someone else, the fresh franchisee has to then sign 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 down to our confidential operations manual, he had made quite a few changes.
Worse, the guy wasn’t following the proper procedures which were part of a large navy account we had with a indigenous company. Again because he didn’t have to follow are confidential operations manual, of which he never read simply because as he said; “I never signed nothing. inches Nor did he truly go to our franchisor workout, which is also required of new managers which are sprinting our franchised business model, if ever the owner is not involved in the day-to-day operations.
One day, I appeared to fill in for one your area representatives in that location, and I went to visit the franchisee on the Georgia part. 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 the market to him without authorization.
Let me give you an illustration of this a crazy thing who happened to us. There were a franchisee who lived on the border of Atlanta and Alabama. We allowed them to have a joint sales area in both states. Due to the type of industry we took part in there were different rules on each side of the border.
I explained to him that he had to run the business a particular way, and he said that I was wrong, simply because he didn’t sign any sort of agreement, and he would definitely do it his way. Oh yeah great I thought, now I have a rogue franchisee on my hands, plus they are not keeping with the consistency of our brand name.