As a former franchisor, and having franchised my company meant for over 10 years before I sold it, it seems opinion that I’d experienced you can find possible scenario. Most people reckon 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 operate the business or store for the 10 year term by means of automatic renewals.

One day, I occured to fill in for one of our area representatives in that vicinity, 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 our franchisee had transferred this company to him without acceptance.

Yes, that sounds like a decent business model, nonetheless 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 properly; where the franchisee qualified for the loans very quickly, experienced a perfect resume, had a superb location, didn’t care to make sure you negotiate any terms in the franchise agreement, and every thing went perfect during the decade they were in business prior to vitality.

This is a serious issue, and it happens on a regular basis than people realize. Franchisors need to demand that the correct procedures are followed, usually you run into all sorts of instances. Please consider all this and think on.

You see, in the franchise arrangement there are stipulations before you copy the business to someone else, the new franchisee has to then sign 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 as per our confidential operations information, he had made quite a few adjustments.

Let me give you an example of a crazy thing which usually happened to us. We a franchisee who enjoyed on the border of Georgia and Alabama. We allowed them to have a joint sales area in both states. With the type of industry we participated in there were different rules and regulations on each side of the border.

Worse, he wasn’t following the proper techniques which were part of a large fast account we had with a national company. Again because the guy didn’t have to follow will be confidential operations manual, of which he never read considering as he said; “I never signed nothing. inch Nor did he ever go to our franchisor teaching, which is also required from new managers which are going our franchised business model, if ever 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 feature for distributing goods, offerings, and products; it isn’t Disneyland. I doubt any industry really is.

I explained to him who he had to run the business a certain way, and he stated that I was wrong, since he didn’t sign any kind of agreement, and he would definitely do it his way. Also 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.

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