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Being a former franchisor, and needing franchised my company designed for over 10 years before We sold it, it seems to me that I’d experienced just about every possible scenario. Most people think 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 to get a 10 year term by means of automatic renewals.

Yes, the fact that sounds like a decent business model, nonetheless nothing is ever as basic as it appears in the franchising industry. Let me explain. Progressively, I don’t think I ever endured 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 a perfect location, didn’t care to help 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 renewal.

I explained to him which usually he had to run the business an unusual way, and he said that I was wrong, since 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, and they’re not keeping with the regularity of our brand name.

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

One day, I occured to fill in for one of our area representatives in that section, and I went to visit the franchisee on the Georgia aspect. When I got there, We were talking to his brother-in-law. Apparently he was today running the business, and our franchisee had transferred the business to him without acceptance.

Worse, this individual wasn’t following the proper measures which were part of a large navy account we had with a indigenous company. Again because he didn’t have to follow are actually confidential operations manual, which he never read considering as he said; “I never signed nothing. ” Nor did he at any time go to our franchisor workout, which is also required in new managers which are functioning our franchised business model, in case the owner is not involved in the day-to-day operations.

Let me give you an example of a crazy thing the fact that happened to us. We had a franchisee who enjoyed on the border of Atlanta and Alabama. We allowed them to have a joint sales area in both states. As a consequence of type of industry we took part in in there were different rules on each side with the border.

You see, in the franchise deal there are stipulations before you copy the business to someone else, the brand 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 per our confidential operations guidebook, he had made quite a few shifts.

This is a serious concern, and it happens more often than people realize. Franchisors need to demand that the correct procedures are followed, otherwise you run into all sorts of situations. Please consider all this and think on.

Entire article:http://www.joint-metallique.fr

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