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Like a former franchisor, and having franchised my company for over 10 years before We sold it, it seems to me that I’d experienced concerning possible scenario. Most people think that franchising is really cut and dry; you have a team agreement, people pay you will a certain amount to purchase their franchised outlet, and then they run the business or store to get a 10 year term by means of automatic renewals.

Let me give you an example of a crazy thing who happened to us. There were a franchisee who enjoyed on the border of Ga and Alabama. We allowed them to have a joint property in both states. With the type of industry we took part in there were different foibles on each side of the border.

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

This is a serious issue, and it happens again than people realize. Franchisors need to demand that the correct procedures are followed, in any other case you run into all sorts of instances. Please consider all this and think on.

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

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

Yes, that sounds like a decent business model, nevertheless nothing is ever as straight forward 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 by everything went exactly perfectly; where the franchisee qualified to get the loans very quickly, possessed a perfect resume, had a superb location, didn’t care to negotiate any terms with the franchise agreement, and everything went perfect during the 10 years they were in business prior to vitality.

I explained to him the fact that he had to run the business a clear way, and he said that I was wrong, because he didn’t sign any kind of agreement, and he would definitely do it his way. Wow great I thought, right now I have a rogue franchisee on my hands, and they are not keeping with the consistency of our brand name.

One day, I happened to fill in for one our area representatives in that vicinity, and I went to go to the franchisee on the Georgia area. When I got there, I was talking to his brother-in-law. Apparently he was right now running the business, and some of our franchisee had transferred the business enterprise to him without endorsement.

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