By Mr. Laurent DELAFONTAINE , Network Development Consultant, Axe Réseaux. Published in Franchise Magazine, http://www.franchise-magazine.com/avis-des-experts/du-bon-usage-du-contrat-par-l-animateur-401.html
Reminding the franchisee of the objectives of the various clauses in the signed contract: this is the primary role of the facilitator, believes the author, a consultant. He calls for training facilitators in this regard, so that they gain confidence and credibility.
The role of the network facilitator has evolved significantly in recent years, reflecting the profile of the franchisee . More focused on the overall performance of the company, more focused on customer benefit, and strongly committed to the brand, the facilitator is no longer the “visit grid ticker”.
And yet, it is clear that he has a poor grasp (due to lack of training) of all the tools made available to him by the brand, instinctively preferring to refer to his often real experience. This attitude finds its limits in the conflictual disagreement with the partner, and the facilitator cannot find refuge in the franchise contract , whereas this is his primary function. Explanations based on three non-exhaustive examples.
The franchisee is reluctant to send his sales statistics
A classic of the profession! What presenter hasn't repeated this request to an indisposed franchisee ? And yet, the brand's knowledge of the sales mix, inventory levels, post-promotion traffic, etc. allows it to build its recommended price list, its media plan, etc.
The franchisor is therefore often more interested in knowing what's selling than the content of a partner's reception fees. A well-drafted contract will require, at a minimum, a tax return and the submission of sales statistics. Let's explain the reason and purpose of this.
The franchisee threatens to sell his store to a competing brand
Not so simple! Partners sometimes forget that their franchise agreement includes a buyer approval clause. In short, while they are free to sell their business to anyone, they are required to obtain the franchisor 's approval for the sale of the brand to a third party. Here again, a knowledgeable lawyer will have included a pre-emption clause based on expert opinion on the sale of the business.
Thus, a franchisee who is offered an extraordinary sum for the purchase of their business sometimes forgets that their franchisor can mandate an expert to set the real price of the property and purchase it as a priority. These clauses protect the network, both in terms of the number of partners and the quality of the locations.
The franchisee is “playing for time” to renovate his store
“Next year when things are better!” For a franchisee , it is rarely the right time to incur costs that benefit the concept. And yet, consumers want to find a consistent offering in a franchise network.
In addition, these architectural developments, often costly for the franchisor , often become profitable for a minimum volume. Once again, the distribution lawyer will be able to include a concept update clause, including an amount per m², indexed and cumulative from one year to the next, excluding the first and last years of the contract.
In conclusion, let's point out that franchisees sometimes tend to forget the commitment formalized in their contract. This is probably due to their growing mastery of operating the concept, the insurance that comes with it, and a royalty that has become excessive in their eyes.
The facilitator is focused on his or her goal of providing a business interface for the brand, and sometimes, due to a lack of training, finds himself or herself out of step with the purely financial objective of the partner. However, it would be enough to remind the partner of the objectives of the various clauses of the franchise agreement he or she signed. Let's train the facilitators in this regard so that they gain confidence and credibility.