Much like a disgruntled former lover, an ex-franchisee can cause no end of problems for a franchise owner once the relationship ends. Yet an ex-franchisee does not have to be a negative influence when the relationship ends, according to Lorelle Frazer from Griffith Business School.
She recommends that franchisors maintain an ongoing positive relationship with ex-franchisees, even when the franchise agreement ends.
‘From copycat concepts to negative media coverage and litigation, ex-franchisees can be a potential distraction for any franchise system,’ says Frazer.
‘Changes to the Franchising Code of Conduct mean ex-franchisees have more power than ever to influence the future success of a franchise system, with franchisors now required to disclose contact details of former franchisees,’ says Frazer.
These contact details will allow prospective future franchisees to contact ex-franchisees to do their homework on the business.
To coincide with Griffith University’s launch of its new Asia-Pacific Centre for Franchising Excellence, a free seminar – Stopping your Ex-Franchisee Destroying your System – was held recently in Brisbane by Frazer in partnership with Franchise Advisory Centre director Jason Gehrke. The seminar produced some salient tips and strategies.
Franchisors: How To Deal With Your ‘Ex’ Factor
May 19, 2008 by Cris | 0 Comments
In Basic Guidelines, Law & Agreements, Franchisees, Franchises, Franchisors, How To, Strategy
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