The hidden cost of a franchise dispute
Owning and operating a business can be stressful at the best of times and if problems arise it can be even more so. When business partners fall out the person who was previously there to assist and support is now an adversary, making matters even worse. Disputes in...
Where the problems often start
Very few relationships manage to avoid occasional differences of opinion. If both the parties recognise that they are mutually dependent, as should be the case in a franchisee-franchisor relationship, it is usually easy to amicably agree to disagree. If there is an...
The wrong reasons
Many people who start their own business, especially if it is a new concept, dream of turning it into a franchise. They have devised a successful formula and want to grow by opening more branches. There are two ways to do this; recruit a management team and start...
Disputes with franchisees
Very few franchisors manage to avoid occasional disputes with one or more of their franchisees. The causes can range from the franchisee’s non-compliance with the franchise model, the under-declaration of sales or damaging the reputation of the brand through poor...
The key elements when resolving problems for franchisors or franchisees
Don’t let the situation get personal Don’t ‘go legal’ unless it is unavoidable. Give the opposing party a perceived benefit Let’s take these one at a time. It is all too easy to let personalities get in the way of resolving a problem. It happens all the time and it...
The perils of the comfort zone and when buying a franchise and how to avoid it.
Most people want a reasonable work-life balance and very few remain passionately focused on building their business for their entire working life. How this applies when selecting a franchise is simple. If a franchisee joins a brand while the passion and drive of...
Disputes with a Franchisor
Disputes with franchisors generally fall into either of two categories. The first is misrepresentation which is a common problem in the franchise sector. Over the years there have been many legal actions against franchisors for making false or exaggerated claims in...
This a difficult time to be in business
The Covid 19 crisis and resulting lockdown has created a very difficult trading environment for most businesses. In theory, the situation should be less severe for franchisees because they benefit from the support of their franchisor. Sadly that isn’t always the...