Like a former franchisor, and needing franchised my company for over 10 years before I sold it, it seems opinion that I’d experienced in relation to possible scenario. Most people believe franchising is really cut and dry; you have a team agreement, people pay most people a certain amount to purchase their franchised outlet, and then they get the job done the business or store for the 10 year term by means of automatic renewals.

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

You see, in the franchise agreement there are stipulations before you copy the business to someone else, the brand new franchisee has to then hint 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 much like our confidential operations instructions, he had made quite a few changes.

I explained to him who he had to run the business a clear way, and he stated that I was wrong, because he didn’t sign whatever agreement, and he would do it his way. Oh great I thought, nowadays I have a rogue franchisee on my hands, and they’re not keeping with the regularity of our brand name.

Worse, the guy wasn’t following the proper types of procedures which were part of a large navy account we had with a national company. Again because he didn’t have to follow will be confidential operations manual, which he never read simply because as he said; “I never signed nothing. ” Nor did he at any time go to our franchisor teaching, 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.

Yes, who sounds like a decent business model, nevertheless nothing is ever as simple 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 everything went exactly properly; where the franchisee qualified to get the loans very quickly, experienced a perfect resume, had a wonderful location, didn’t care to make sure you negotiate any terms for the franchise agreement, and all sorts of things went perfect during the decade they were in business prior to repair.

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

Let me give you a good example of a crazy thing the fact that happened to us. We a franchisee who been around 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 in there were different foibles on each side with the border.

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

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