Avoiding Disputes
How to avoid franchisee/franchisor disputes?
Compromise where possible on minor matters but stand firm on key issues: fees, customer service, signage and uniforms
Keep careful notes of all conversations and Emails
Ask help from National or Divisional Franchisors if unable to settle
Even if terminating a franchisee, allow them to sell if possible. With their written consent you may suspend their franchise for a short time to make this possible.
If all else fails, offer the right to go independent without cost
Do not chase for fees if a Franchisee fails. National will rebate its 15% commission for up to three months’ fees if written off.
If a Franchisee wishes to go independent, ask for the fee allowed in the contract but you are advised to pursue legally if they fail to pay.
Exercise your right to buy the surrendering Franchisee’s trailer if feasible (purchase price minus 20% p.a. depreciation). Otherwise,, surrendering Franchisees must remove all traces of Jim’s Group signage.