Posts Tagged ‘franchise partnership’

Buying a franchise unit is probably easy if you have the capital, but running one is a different story.

Firstly, a franchise owner is required to be responsible for the whole business operations, from hiring to managing finances. This is a good thing, but not many can actually do this well – wearing many hats is not for everybody.

Secondly, a franchise owner is expected to build a good relationship with the franchisor and other franchisees, because in essence, franchising is all about relationship. Also, you are expected to closely follow guidelines laid out by your franchisor – this is why not all entrepreneurs and …

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We are always ‘reminded’ by various publications on franchising, online and off line, that franchising is expensive, and bailing out from the franchise agreement is costly for the franchisee.

Unfortunately, not many realise that not only franchisees, franchisors are also financially affected by the franchisee-franchisor partnership break-up – And that is just the tip of the iceberg.

Break-up costs to the franchisee

It is obvious that the franchisee will be severely hit by huge monetary loss due to ‘the-usuals’ in the franchise agreement – The non-competing agreement and the right for the franchisor to terminate the franchise agreement almost at will.

The non-competing agreement …

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