As 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 you can find possible scenario. Most people reckon that franchising is really cut and dry; you have a team agreement, people pay most people a certain amount to purchase their franchised outlet, and then they run the business or store for a 10 year term with automatic renewals.

You see, in the franchise arrangement there are stipulations before you transfer the business to someone else, the popular franchisee has to then signal 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 much like our confidential operations information, he had made quite a few changes.

I explained to him that he had to run the business a certain way, and he stated that I was wrong, because he didn’t sign any sort of agreement, and he was going to do it his way. Also great I thought, now I have a rogue franchisee on my hands, and maybe they are not keeping with the uniformity of our brand name.

Worse, the guy wasn’t following the proper types of procedures which were part of a large fast account we had with a indigenous company. Again because this individual didn’t have to follow will be confidential operations manual, which inturn he never read simply because as he said; “I never signed nothing. ” Nor did he ever go to our franchisor workout, which is also required from new managers which are functioning our franchised business model, in case the owner is not involved in the day-to-day operations.

That really doesn’t happen with franchising, and although franchising is an extremely successful business structure for distributing goods, services, and products; it isn’t Disneyland. I doubt any online business really is.

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. Over time, I don’t think I ever had a perfect franchise sale when everything went exactly perfectly; where the franchisee qualified designed for the loans very quickly, experienced a perfect resume, had a perfect location, didn’t care to negotiate any terms with the franchise agreement, and everything went perfect during the a decade’s they were in business prior to vitality.

One day, I appeared to fill in for one of the area representatives in that location, and I went to visit the franchisee on the Georgia aspect. When I got there, I actually was talking to his brother-in-law. Apparently he was right now running the business, and our franchisee had transferred the market to him without agreement.

Let me give you an illustration of this a crazy thing that happened to us. We’d a franchisee who resided on the border of Ga and Alabama. We allowed them to have a joint location in both states. As a result of type of industry we took part in in there were different regulations on each side of the border.

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 situations. Please consider all this and think on.

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