To be a former franchisor, and developing franchised my company to get over 10 years before I just sold it, it seems in my opinion that I’d experienced concerning 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 operate the business or store for the 10 year term by means of automatic renewals.

Worse, this individual wasn’t following the proper measures which were part of a large fast account we had with a indigenous company. Again because he didn’t have to follow are actually confidential operations manual, which 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 of new managers which are going our franchised business model, in case the owner is not involved in the day-to-day operations.

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

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

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

You see, in the franchise agreement there are stipulations before you transfer the business to someone else, the brand new franchisee has to then indicator the latest franchise agreement, and 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 changes.

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

Yes, the fact that sounds like a decent business model, however nothing is ever as simple as it appears in the franchising industry. Let me explain. Progressively, I don’t think I ever had a perfect franchise sale where by everything went exactly perfectly; where the franchisee qualified to get the loans very quickly, had a perfect resume, had a wonderful location, didn’t care to help you negotiate any terms of the franchise agreement, and everything went perfect during the decade they were in business prior to renewal.

Let me give you a good example of a crazy thing that happened to us. We 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 for the border.

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