Franchisor Policies for Unlicensed or Sold Territories
Franchisors frequently have issues when they own a brand name which has service autos exactly where franchisees want to operate in non-franchise assigned territories. We had this as a re-happening issue in our franchise system. We arrived up with this policy, which is also in our Confidential Operations Manuals. Right right here is a sample policy for our franchisees:
&quotUnlicensed Areas&quot
&quotIf you are called into an unlicensed territory for service, you may service that particular consumer. You will obviously select up additional customers in these places from referrals, prospects and individuals who see the truck. It is ok to service these customers. Nonetheless, you ought to:
Not have much more than one-third of your clientele out of your unique territory
Give up these customers if we marketplace that adjacent territory to a new franchisee
You ought to let us know which other region you are operating in
We do not suggest washing autos outside your unique territory merely simply because it will cost you many hrs in travel time much more than the program of a week. Fifteen minutes right here, twenty minutes there. It adds up, trust us. We have assigned you an unique region, which will much more than suffice. Subsequent all:
You know the region
You reside in the territory
You have a perfect mix of business
We invested cash marketing that region
If you are occasionally called to a non-assigned or unlicensed territory and you discover another franchisee is also operating that region, it is ok to split the region amongst yourselves with the understanding that which ever before buildings/customers they were doing prior to your coming in that region you ought to honor. You and the other franchisee might each have to give up these customers if we marketplace or assign that territory and retreat back to your unique territory. Be suggested that this can occur and it has prior to. If these customers you have been servicing are very essential to you, you may want to buy that additional region. We of, program, would adore for you to have this as component of your unique territory merely simply because you are one of our greatest franchisees. Contact your regional director to begin the negotiation process. And, by the way, do not deliver your lawyer to the negotiations. This is a very informal procedure.
We are all on the exact same group. If you can deal with the additional customer demand and our staff likes you, I am sure we can negotiate a sincere deal for all worried.&quot
If you are a franchisor of a house based or service franchise system you ought to deal with this scenario or you might wind up in court defending what is generally comprehended by all occasions anyway. Think about this and get your policy prepared and let it be recognized.
“Lance Winslow” – If you have innovative ideas and distinctive perspectives, come think with Lance www.WorldThinkTank.net/wttbbs