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Franchisor Experience

Posted by Elizabeth Gore-Jones on 7 June 2019

I have just reviewed a franchise agreement where the franchisor has only had 2 years of experience in the franchised business.

When acting for franchisors I advise them that they need to have had enough experience in the business to give their franchisees real value for their investment.

Franchisors should have created systems to make running the business as bombproof and streamlined as possible.

I usually tell franchisors they need to have made "all of the mistakes" and created solutions and answers to give their franchisees real benefit.

It can be a red flag for franchisees if the franchisor does not have much more industry experience than they have.

What do you think?  Is 2 years of experience too little?

Author: Elizabeth Gore-Jones
About: Elizabeth specialises in franchising law. She lectures at Bond University PLA in franchising, she sits on the Queensland Law Society Franchising Committee, she is a past member of the Women in Franchising committee and a past member of the Franchise Council of Australia.
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Tags: Business Franchisee Franchisor

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