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

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

I explained to him which usually he had to run the business an unusual way, and he talked about that I was wrong, considering he didn’t sign any kind of agreement, and he would definitely do it his way. Oh yeah great I thought, right now I have a rogue franchisee on my hands, and maybe they are not keeping with the consistency of our brand name.

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

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

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

Yes, the fact that sounds like a decent business model, nonetheless nothing is ever as straight forward as it appears in the franchising industry. Let me explain. Over time, I don’t think I ever had a perfect franchise sale where everything went exactly appropriately; where the franchisee qualified designed for the loans very quickly, experienced a perfect resume, had a wonderful location, didn’t care to 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.

One day, I occured to fill in for one your area representatives in that vicinity, and I went to go to the franchisee on the Georgia aspect. When I got there, I just was talking to his brother-in-law. Apparently he was right now running the business, and your franchisee had transferred this company to him without agreement.

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

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