Lately the phrase "pro-franchisee" has been bantered about a
lot regarding legislative attempts to add more franchisee protections.
Pro Franchisee Legislation Faces Some Tough Opposition ,
Posted by Ed Teixeira, gives a brief summary on why these legislative attempts
are meeting such resistance.
In my practice, early detection (sounds medical) is important. Understanding
the franchise system a client is looking to enter, spending time understanding
the contracts and nuances, is an imperative step prior to getting involved
in any business. It allows a franchisee to prepare for bumps in the road.
Clearly franchisors and franchisees must work together to command a strong
system. The rationale for pro-franchisee legislation, that franchisees
be able to reap the benefits of their hard work, build equity and retirement
value, without it being taken out from under them is a cause worth supporting.
Franchise agreements come in all sizes, some more balanced then others,
and franchisors come in those same sizes; pro-franchisee legislation tends
to balance the highs and lows, providing a bit more security in the investment.
In the end we are all working towards the same goal, a strong, profitable,
franchised business, system and loyal customers.