Once you've started operating your franchise business, you're fed up... The franchisor is interfering too much in your business. However, they must strike a balance between their desire to ensure the concept is being properly implemented and your position as an independent entrepreneur. Try to engage in dialogue and work with other members of the network to help it evolve.
If you've opened a franchise unit but find your franchisor too hands-on, your frustration is probably legitimate. Even if you have to follow a concept, you're an independent entrepreneur. The day-to-day management of the company is your responsibility. "The problem sometimes arises when a brand has been a branch for a long time and wants to implement this new system. It may happen that the head of the network hasn't necessarily taken the time to fully understand the franchisor's business," explains Caroline Morizot, manager of CM Entreprise Conseil (strategy, franchise development). "When the franchisee goes into business for themselves, it's also to have their freedom." Furthermore, be aware that if the franchisor's interference is proven, they can be convicted and the franchise reclassified as an employment contract. But this is an extreme case. It is therefore first necessary to define what an invasive franchisor is. “There are some who are very present but who bring so much value to their network that the franchisees succeed. But the business relationship must be balanced,” tempers Laurent Dubernais , president of AGT (provision of collaborative platforms for managing and running franchise networks). Thus, it is normal and even essential for the franchisor to be present, the problem is when he oversteps his duties, as Caroline Morizot illustrates. “For example, regarding the field, it is operational and this must be respected. The franchisor must not intervene in the franchisee's unit without his authorization or demand figures or data to which he should not have access. For everything related to management software, there may also be access limits. He must limit himself to requesting the data stipulated in the contract. Sometimes, even in the latter, the franchisor goes too far. You have to be careful.”
Joint actions
The best thing to do is to try to find an arrangement and not immediately resort to confrontation. You have to try to open a dialogue. “Networks often have franchisee commissions. Generally, when the franchisor goes too far, they don't do it with just one person. So you have to discuss it with the others. Then go and talk to them together. The goal is still to avoid litigation. It's about finding solutions to help the situation evolve. They may be acting in good faith. Sometimes the franchisor, especially in young networks, doesn't see the problem; they lack perspective. The commission can help things evolve before immediately going to see a lawyer,” advises Caroline Morizot. Laurent Dubernais also advocates for dialogue. “The first step is to talk about it with the facilitator. For example, by reminding them what was defined in the contract, what the franchisor must provide, what they must not do.” Having analyzed it well upstream is therefore a crucial point. Getting support to study it can be beneficial to see if, beyond legal obligations, the franchisor's state of mind really suits you. If these actions have no impact, you can start to be more formal, for example by sending a letter explaining in writing the interferences noted. While trying to maintain a desire for an amicable agreement. “You have to go crescendo, there is a relationship of trust and you have to try not to break it ,” advises the president of AGT .
A procedure
If the franchisor truly refuses to change and you believe this constitutes interference contrary to the franchise, the next step is to contact a lawyer. The best thing to do is to find a specialist in the associated business to be best informed. Initially, they will be able to advise you on whether your approach is legitimate. Caroline Morizot points out that a lawyer can act as a mediator. “A lawyer can be a means of negotiating. That's also their role.” This is also the case for the French Franchise Federation. If the situation becomes difficult, there is still the option of taking legal action with a lawyer. “The goal is to avoid this, but sometimes it's unavoidable,” acknowledges Caroline Morizot. Here again, the best thing to do is to try to reach an agreement, for example, to leave the network without penalty. To gain more leverage, don't hesitate to take joint action with other franchisees who are pursuing the same approach. Finally, if the case goes to court, it's important to be aware that the process can be lengthy, as the experience of the manager of CM Entreprise Conseil attests. "On average, it lasts between three and four years."
, by Innocentia Agbe on the website The Official Franchise