3 Must Do’s to Bring Balance Back into Franchising

Some Franchisors may not like them?

I support ethnically sound franchising, but firstly helping family businesses becoming successful.

The whole reason I entered the industry in the 90s!

There is plenty of PR spin from franchisors claiming support.

Robert James and James Home Services: Some of the biggest brands Franchisor are using their resources to vilify failing franchisees, it’s actually epidemic.

Franchisors’ are going to extreme lengths to bury the true content.

The industry has to bring balance back into the Franchisor/Franchisee relationship.

Here are the 3 Must Do’s to start to give the franchisees a fair go.

1. No Heavy Handed Tactics.

Franchisor who systematically use their lawyers to vilify anyone who speaks up about the hardships in their networks has to stop!

Franchisees being systematically bullied by lawyers of the franchisor is the normal practice. This is destroying people and families.

An open format that gives potential franchisees the whole story about networks before they join. Franchise version of Wikileaks. franchiseleaks maybe?

2. Independent Franchisee Advocates

An experienced external negotiator who is in the franchisee’s corner.

Franchisors have a commercial gun at the franchisees head, a huge emotional advantage in any negotiation. Their lawyers use this position to deliberately create mental health issues for the franchisee.

Under a requirement of the agreement a percentage of all franchisee’s fees paid go towards this fund. Franchisees in a business that is already failing haven’t got the resources to use lawyers to fightback. Not many could afford to run the business and a legal challenge.

Lawyers make money out of conflict, franchisees don ‘t!

3. Personal Guarantee by the Franchisor Directors in all Franchise Agreement

Franchisors need some hurt in the franchisee game.

The franchisee has everything on the line.But most franchise agreements don’t hold the franchisor personally accountable.

2 building franchisees under administration in 3 months from a FCA awarding winning franchisor. Leaves $millions owned to Tradies.

Franchisees failing and subbies losing big money all the while the franchisors’ lives a life of opulence.

The tide is turning on the injustice, Franchisors who are hiding the sins of the past should be concerned.

Franchisors who create a fair deal for their franchisees can still thrive.

Robert James and James Home Services: The only way franchising will survive is for the poor behaviour to be exposed to protect future victims and we set up systems or practices that balances out the power imbalance.

Education of potential franchisees or ethical franchisors is the most effective answer.

I believe ethical franchising needs to be on par with ethical coffee production for a comparison?

Not ALL Franchisors are thugs!

The only thing evil needs to flourish is for good men to do nothing.

Social media and the internet are changing our industry forever.

Honest franchisors who get pragmatic and acknowledge the “sins” of the industry can get on the front foot can set up new standards that puts back the balance into franchising.

Originally Posted: https://www.linkedin.com/pulse/3-must-dos-bring-balance-back-franchising-robert-james/