Dispute Resolution of Territory for Mobile Franchised Companies

Franchisors of home based and mobile businesses need to carefully watch their franchisees who innately try to hunt in their fellow franchisees territories. The most important advice a franchisor should give the franchised outlets in this case is to work it out themselves. A simple policy is best for example here is a possible excerpt from a franchise manual which lays out some basic understandings:

"The franchisees should be able to work out any problems you may have among yourselves. If you do have problems, here is the chain of command: Talk to neighboring franchisee; Put it in writing with the neighboring franchisee; Mail us a copy of fax it; If problem persists, talk to regional director; If it still can not be worked out call franchisor; If it is still a problem, prepare to go to arbitration. Remember, you need to procure an understanding that can be considered a win/win situation for everyone involved with the end user (the customer)."

Additionally here are some thoughts for franchisees of mobile or home based businesses, which can help them get along in a franchise system without stepping on other franchisee's territories or violating their franchise agreements. If you own a franchise these are some things you might think of.

Franchisees Should Be Fair To Each Other; Do Not Be A Ball Hog

When we say be fair, we mean be honest and have integrity. When you purchased your franchise business from us you were assigned an exclusive territory. You can review this exclusive territory in the exhibit of your franchise agreement. Your neighboring team member (franchisee) was also granted an exclusive territory. These territories do not overlap. If there is a territory dispute and you are operating within your exclusive territory as outlined in your exhibit, then you are in the right, absolutely and 100%. If there is a dispute and it is not in your exclusive territory, you are in the wrong and should act accordingly with your fellow franchisee. You should yield that particular housing tract, town, office complex, account or group of buildings to your neighboring franchisee immediately unless he/she allows you to work there out of pure kindness. It's a similar idea to an easement and an agreement between you and your neighboring franchisee should be put in writing. You should also send copy of such ad hoc agreements by fax to your franchisor ASAP so that they can notify your regional director and put a notification in your respective franchisee files. We need to know and you should have agreed upon the exact: Address(s); Longitude/Latitude; Names, Accounts; Duration of Agreement

If there will be any money changing hands for the additional territories, the franchisor should be notified prior to the agreement and approve such action. If your franchise agreement has no provision for this as most do not it is a good idea to have it in writing. If you are trading one location for another, that should also be agreed upon and both locations or all locations should be delineated on a map and attached to your agreement. You might wish to consider these words to keep problems out of the courts and resolve territory disputes by way of understanding before they occur. Think about it.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

In The News:


A Look at Small Business Incorporating in Florida

The choice to incorporate a small business in Florida has... Read More

Small Does Not Mean Invisible!

Running a business on the net these days can be... Read More

Mini-Blind Cleaning Business, Case Study

Sometimes the simple businesses are the ones, which make good... Read More

Marketing Your Small Business with Success Stories

-- The One Pager Shortcut Series --An effective and compelling... Read More

Concrete Cleaning Discussed at World of Concrete Expo 03

If you are in the pressure washing business and are... Read More

Quality Controls for Franchising Companies Sample Outline

Quality control in franchising companies is paramount and all franchising... Read More

Are You Making These Mistakes In Your Business?

You've probably heard the statistic that 95% of small businesses... Read More

SBAs 8(a) Program Can Help Some Companies Compete

Q: A friend told me that as a woman of... Read More

The PR Commitment to Small Business

We're birds of a feather, public relations and small business.... Read More

Explode Your Consulting Income

Here are just a few ways to increase and diversify... Read More

Tell Me The Reasons Why I Should Believe You?

Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?I recently... Read More

Be Nice to Your Payroll Department

Ok, so next to the taxman, your company payroll department... Read More

Do You Want Your Own Fully Programmable ERP? - Part 2

In the first article we mentioned the main characteristics that... Read More

The Key to a Successful Business

Where would a business be without a business plan? A... Read More

Increase Profits With a Small Investment of Time and No Money

The less a business pays for goods and services the... Read More

Tracking Revenue For MORE Profits

The revenue history is a vital piece of your power... Read More

How to Start a Pet Transportation Business

Pet Transportation Services are needed as the number of pets... Read More

A Business Plan Is Not Worth A Cracker To A Struggling Business - A Plans The Last Thing It Needs

Before you start a business we encourage you to prepare... Read More

Market Makers Play a Significant Role in Reverse Mergers

One overlooked individual in the process of taking a company... Read More

4 Areas Where Your Business is Losing Money

In my 18 years of consulting I have heard it... Read More

FTC Adding to the Franchise Rule

Last summer the FTC put forth a report and then... Read More

7 Cash Flow Secrets Your Accountant Never Told You

Looking for ways to boost your cash flow? As a... Read More

Five Tips for First Time Entrepreneurs

It seems so long ago that I started my first... Read More

Franchising and Royalty Payments

If you are thinking of turning your current into a... Read More

Mobile Detailing VS Fixed Site Detailers

Mobile detailers will find themselves with lots of competition even... Read More