Accessible wealth: The best way to discourage franchisor opportunism


Wealth is simply accumulated energy.

Energy needs to be stored to be used at the appropriate time by skilled, competent and experienced crisis management businesspeople.

  • Every franchisee group should maintain a reserve of emergency funds.
  • Do NOT buy into any franchise system fails to have this form of business risk insurance in place

Want to send a very strong signal to your franchisor?

  1. Do NOT immediately lawyer up or build wealth to blow it on legal work.
  2. Build up and keep a reserve of $250,000 minimum in a fully functioning, professionally run but franchisee-led group or network.

By collecting but not spending it, this will provide your business with its maximum preventative protection. It’ll also buy you time to a legal challenge by putting the aggressor in a “clinch” (no ear biting needed).

Predators tend to lull you into a false sense of security and then pounce when they feel you are at your weakest and brokest.

The group’s bylaws can even institutionalize this “stickiness”.

  • Trust, yes.
  • But Trust and verify
  • And always have someone on the lookout to sound the alarm, when needed.

Call it a meerkat strategy, if you like.

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