As a former franchisor, and having franchised my company designed for over 10 years before I actually sold it, it seems for me that I’d experienced in relation to 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 get the job done the business or store for the 10 year term with automatic renewals.

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

Worse, he wasn’t following the proper 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, of which he never read simply because as he said; “I never signed nothing. ” Nor did he truly go to our franchisor teaching, which is also required of new managers which are running our franchised business model, if the owner is not involved in the day-to-day operations.

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

I explained to him who he had to run the business a clear way, and he said that I was wrong, since he didn’t sign any sort 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, plus they are not keeping with the uniformity of our brand name.

You see, in the franchise deal there are stipulations before you switch the business to someone else, the fresh 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 down to our confidential operations instructions, he had made quite a few changes.

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

Let me give you a good example of a crazy thing who happened to us. We a franchisee who lived on the border of Georgia and Alabama. We allowed them to have a joint property in both states. Due to the type of industry we participated in there were different rules and regulations on each side in the border.

Yes, the fact that sounds like a decent business model, then again nothing is ever as straight forward as it appears in the franchising industry. Let me explain. Progressively, I don’t think I ever had a perfect franchise sale when 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 make sure you negotiate any terms with the franchise agreement, and almost everything went perfect during the several years they were in business prior to renewal.

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