As a former franchisor, and developing franchised my company designed for over 10 years before I sold it, it seems for me that I’d experienced you can find possible scenario. Most people reckon that franchising is really cut and dry; you have a team agreement, people pay you a certain amount to purchase their franchised outlet, and then they operate the business or store to get a 10 year term with automatic renewals.

One day, I happened to fill in for one of our area representatives in that location, 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 right now running the business, and your franchisee had transferred the business to him without agreement.

Let me give you an illustration of this a crazy thing that happened to us. We had a franchisee who enjoyed on the border of Georgia and Alabama. We allowed them to have a joint property in both states. As a consequence of type of industry we took part in there were different foibles on each side for the border.

You see, in the franchise deal there are stipulations before you copy the business to someone else, the popular franchisee has to then sign 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 shifts.

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

I explained to him the fact that he had to run the business an unusual way, and he talked about that I was wrong, because he didn’t sign any kind of agreement, and he was going to do it his way. Wow great I thought, now I have a rogue franchisee on my hands, plus they are not keeping with the uniformity of our brand name.

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

Yes, which usually sounds like a decent business model, then again 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 where everything went exactly perfectly; where the franchisee qualified designed for the loans very quickly, experienced a perfect resume, had an appropriate location, didn’t care to help you negotiate any terms for the franchise agreement, and everything went perfect during the 10 years they were in business prior to vitality.

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 the guy didn’t have to follow are actually confidential operations manual, which inturn he never read considering as he said; “I never signed nothing. inches Nor did he at any time go to our franchisor training, which is also required from new managers which are going our franchised business model, if the owner is not involved in the day-to-day operations.

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