Franchise heartache
The franchise business model is a very successful one. The model is based on collaboration between the franchisee and franchisor working for the common good to build mutual success. Unfortunately, real heartache can occur.
Bhupinder "Bob" Baber a franchisee found the whole process so bad he committed suicide and left this message on his death:
"I have struggled hard and did the best I could to create a voice for the franchisees in the system and to create a 'support system' for the franchisees, which does not exist, and to fight the injustices of this franchise system.…Not to bring the system down, but to make it fair."
The contractual franchise agreement determines the relative positions of strength between franchisee and franchisor. Given that the franchisor draws up the agreement it's no surprise that the franchisee normally ends up in the weaker position. However, some contractual agreements really can put the franchisee in a no win situation. For example, contracts preventing franchisees suing their own franchisor are not uncommon.
Entering into a franchise agreement is a big step. It often attracts people who are new to running a business as it is often perceived that there will be a good support network and a solid business . But a franchise is a big investment so proper advice is vital from the outset. Don’t rely on verbal representations of the franchisor. Do get proper advice from someone independent with experience in the sector. In no way are all franchises bad, but sign up with a bad one and it can be very costly in a number of ways.
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Philip Woodgate



Franchising is a fascinating business model. The quality of the collaboration between the franchisor and the franchisees is crucial in setting up and expanding a franchise operation. 

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