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?
|Tags: Business Franchisee Franchisor|
Liability limited by a scheme approved under professional standards legislation
Brisbane Office Address: Level 36, Riparian Plaza,
71 Eagle Street, Brisbane,
Queensland, Australia, 4001
Phone: (07) 3087 3493
Gold Coast Office Address: PO Box 428,
Queensland, Australia, 4210
Phone: (07) 5529 8803