Once you've launched your franchise business, you can't take it anymore... The franchisor interferes too much in your business. And yet, the franchisor has to strike a balance between his desire to verify the correct application of the concept and your position as an independent entrepreneur. Try to engage in dialogue, and work with the other members of the network to try and change things.
If you've opened a franchised unit but find your franchisor too present, your annoyance is surely legitimate. Even if you have to follow a concept, you're an independent entrepreneur. The day-to-day running of the company is your responsibility. "The problem sometimes arises when a brand has been a branch operator for a very long time and wants to set up this new system. It can happen that the head of the network hasn't necessarily taken the time to understand the franchisor's business," explains Caroline Morizot, manager of CM Entreprise Conseil (strategy, franchise development). When franchisees set up on their own, it's also to have their own freedom." Moreover, if the franchisor's interference is proven, he can be condemned and the franchise requalified as an employment contract. But this is an extreme case. So, first of all, you need to define what an intrusive franchisor is. "There are some who are very present, but who bring so much value to their network that franchisees do well. But the business relationship must be balanced," moderates Laurent Dubernais, President ofAGT (providing collaborative platforms for steering and animating franchise networks). So, while it's normal and even essential for the franchisor to be present, the problem arises when he oversteps his role, as Caroline Morizot illustrates. "For example, when it comes to the field, the franchisor is in charge of operations, 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 must not have access. There may also be limits on access to management software. Franchisees must only request 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 reach an agreement, and not to go straight to confrontation. Try to open a dialogue. "Networks often have franchisee commissions. In general, when the franchisor goes too far, he doesn't do it with just one person. So you have to discuss it with the others. Then go and talk to him together. The aim is to avoid litigation. It's about finding solutions so that the situation can evolve. He may be acting in good faith. Sometimes the franchisor, especially in young networks, doesn't see the problem, lacks perspective. The commission can help to get things moving before going straight to a lawyer," advises Caroline Morizot. Laurent Dubernais also advocates dialogue. "The first step is to talk it over with the host. For example, by reminding him of what has been defined in the contract, what the franchisor must contribute, what he must not do." It's therefore crucial to have analyzed the contract properly beforehand. Having someone help you study it can prove beneficial, to see if, beyond the legal obligations, the franchisor's mindset 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 interference you have observed. At the same time, you should try to reach an amicable agreement. "There's a relationship of trust and you have to try not to break it," advises the president ofAGT.
A procedure
If the franchisor really doesn't want to evolve and you feel that this is interference contrary to franchising, the next step is to contact a lawyer. It's best to find one who specializes in associated commerce, so as to be as well-informed as possible. As a first step, he or she will be able to tell you whether your action is legitimate. Caroline Morizot points out that a lawyer can play the role of mediator. "A lawyer can be a means of negotiation. That's also his role." This is also the case for the French Franchise Federation. In the event of a blocked situation, there remains the option of taking legal action with a lawyer. "The aim is to avoid this, but sometimes it's unavoidable," admits Caroline Morizot. Here again, the best thing to do is to try and reach an agreement, for example, to leave the network without penalty. To carry more weight, don't hesitate to take joint action with other franchisees who are taking the same approach. Finally, if the case goes to court, you need to be aware that the procedure can be lengthy, as the experience of the manager of CM Entreprise Conseil attests. "On average, it takes three to four years.
by Innocentia Agbe on the website of L'Officiel de la Frranchise
