Franchising with Regional Team Managers and Partners
Franchising with Regional Team Managers and Partners
Many franchise consultants back removed from such advice as securing master franchises as a plan for growth with a replacement franchising company. This can be because the legal issues and the litigation are powerful to accommodate and for that sort of liability there just is not enough money in it. And most franchisor later regret freely giving that much of he pie or they need one or two master franchise failures which brings down the entire system because of dangerous PR and litigation costs. One method thought of for our company was to line up regional team partners and use existing franchisees already below the franchise agreement to assist in regional expansion. However we decided to make them managers instead of master franchises, regional franchises, sub-franchisors or partners. It turned out we were right as we tend to created the speedy expansion term of only 2-years to the regional team managers incase they under performed or failed to assist us in gap new units. Many underwhelmed us, yet as a full the program worked and added many units every year in many completely different regions. This is often sensible because the goal of a franchisor is to expand. Below is the list of stipulations I put forth to insure that everyone had a truthful likelihood within the agreement; Regional team manager understands and acknowledges that the following requirements should be met in order to qualify because the regional team manager: (A)The regional team manager should, at the time of such assignment, be financially responsible and economically capable of performing our objectives during this Agreement and in our business development plan. (B) The regional team manager must expressly assume and agree to perform such obligation and sign a binding agreement with us. (C) The regional team manager should be trained and pass our special regional team manager training course. (D) The regional team manager must be competent and subject to a thirty (30) to sixty (60) day review by us before assignment as the regional team manager. (E) The regional team manager must run their own The Company franchise for at least one month previous to assignment because the regional team manager. (F) The regional team manager should own and run a corporation store unit for the length of their franchise during a specifically designated territory alternative than another franchisee's territory however in their exclusive territory. (G) The regional team manager should be able to provide all on-going support things to the franchisees listed within the Franchise Agreement. (H) The regional team manager must attend any fashioned franchisee organization, union or association meetings in their exclusive territory, which have been officially recognized by us, providing that you want them to be there and of that you are a member. (I) The regional team manager must maintain readily available at least one space representative and one loaner truck for each twenty (20) franchisees in their exclusive territory. (J) The regional team manager should sign a non-competition agreement with franchisees not to work their company store during a franchisee's exclusive territory unless they need been asked to by the franchisee in case of vacation or injury. For this Agreement to be in force the regional team manager must meet all 10 (ten) of the on top of requirements. Additionally to the termination provisions within the Franchise Agreement described in Section 7.one, 7.2 and 7.three, regional team manager can be in default of this Agreement and this Agreement can terminate if 5 (5) or more franchisees transfer or fail within the regional team member's exclusive territory inside a twelve (twelve) month period. This Agreement will stay in force till Franchisor and the regional team manager mutually conform to terminate this Agreement as long because the regional team manager is in good standing and has not violated their The Company Franchise Agreement in any way. Regional team manager can be in violation of this Agreement if they are sixty (sixty) days or additional in arrears with any monies owed Franchisor. If a franchisee from the regional team member's exclusive territory contacts The Company with service problems from the regional team manager, The Company will contact the regional team manager to help solve the problem. If The Company has got to service the franchisee, the regional team manager will be billed for the service to their franchisee from The Company. 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