It’s the nature of the franchise world. It can be tough especially for people with no business expertise who go into a franchise expecting to be spoon fed. If they crash and burn, that’s when fingers are pointed everywhere, except usually inwards.
Yes, there are examples of franchisors who behave in an underhanded manner and shortchange their franchisees, but that’s not the general rule.
I believe that before people contemplate committing to a franchise, they should consider 10 key points:
When franchisors and franchisees are on the same page and committed to mutual benefit, and understand and appreciate each other, a franchise can be a powerful relationship.
But self-serving ideas and opportunism can lead to mutual destruction. Be confident of what you are buying into, but be committed to the process and your role in it and be informed! You won’t always spot a dodgy franchisor before you get into bed with them, but at least if you put the leg work in first you will be better armed to identify and deal with those issues.
Spencer Slasberg, Senior Associate and Commercial Litigator, Bennett & Philp Lawyers