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To be a former franchisor, and needing franchised my company for over 10 years before We sold it, it seems to me that I’d experienced in relation to possible scenario. Most people feel that franchising is really cut and dry; you have a franchise agreement, people pay you a certain amount to purchase their franchised outlet, and then they use the business or store to get a 10 year term with automatic renewals.

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

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

One day, I appeared to fill in for one our area representatives in that location, 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 right now running the business, and this franchisee had transferred the business enterprise to him without acceptance.

Yes, that sounds like a decent business model, however nothing is ever as straight forward as it appears in the franchising industry. Let me explain. Through the years, I don’t think I ever had a perfect franchise sale where by everything went exactly perfectly; where the franchisee qualified for the loans very quickly, possessed a perfect resume, had an appropriate location, didn’t care to negotiate any terms with the franchise agreement, and everything went perfect during the 10 years they were in business prior to repair.

I explained to him which usually he had to run the business a clear way, and he stated that I was wrong, simply because he didn’t sign any 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 regularity of our brand name.

Worse, the guy wasn’t following the proper techniques which were part of a large fleet account we had with a indigenous company. Again because he didn’t have to follow happen to be confidential operations manual, of which he never read considering as he said; “I never signed nothing. inches Nor did he truly go to our franchisor workout, which is also required from new managers which are running our franchised business model, in the event the owner is not involved in the day-to-day operations.

Let me give you an example of 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 territory in both states. With the type of industry we was in there were different regulations on each side for the border.

You see, in the franchise binding agreement there are stipulations before you copy the business to someone else, the fresh franchisee has to then sign the latest franchise agreement, plus they have to be approved by the franchisor. It turned out the brother-in-law was not running the business per our confidential operations manual, he had made quite a few shifts.