THE ULTIMATE MANUAL TO FRANCHISING

We all know that franchisees have to fulfil with the rules of the franchise — it’s a slice of the “deal” you make when you join a franchise web. But what happens if you don’t fulfil? This article examines a few franchise rules you must conform with. We’ll guise at what each rule is, why it’s significant, and what could ensue if you breach the franchise rules.

1. Payment of fees
Franchisees pay steady fees to the franchisor for the right to function the business. Franchise fees can either be a plane amount or a percentage-based fee consequent from sales revenue. It’s also common (predominantly in larger franchises) for a franchisee to underwrite to a publicizing fund, used by the franchisor to market the network as an entire. You must recompense these fees as non-payment of any fee is a breach of the franchise treaty.

2. Operations
A large part of the franchising business model is the obligation to follow a very specific set of operational commands in running the business. These directions are set out in an all-inclusive resource generally called the operations manual. This manual may asylum:
• location selection;
• the custom of branding (trademarks);
• employee administration; and
• service actions.
The franchisee can be in the crack of the franchise treaty if they do not fulfil with any part of the operations guide. Many of the rules that essential to be followed as part of the franchise model are related to a very definite set of operational guidelines set out in the operations manual. The franchisee may be in breach of the franchise contract if they veer away from the guidelines detailed in the operations manual.

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