Franchisee group costs as a lifeline during agreement renewal

RockclimbingIt’s always easier to say no than to say yes.

Some tend to want to buy fire insurance when the house is aflame.

We always think that bad things happen to the other guy and that he deserved it, somehow.

Franchisees quickly discover that, by themselves, they are no match for their franchisor.

The natural alternative seems to be to work together and leverage your peers’ resources, abilities and influence.

Why franchisees don’t tend to do this is odd. Quickly, I know of two reasons:

  1. many franchisees have no personal experience as to the awesome abilities of groups to solve problems (why is your franchisor, their lawyer, etc. members of groups?) and
  2. the franchisor delivers immediate, tangible pain (retaliation, disapproval) while groups offer  nebulous benefits sometime in the future.

Franchisees are trained by franchisors to have a very short-term focus. It is much easier to control when the sheep can’t see the wolf on the horizon.

Franchisees must resist the urge to just drift with the current. One base to cover is a new contract coming down the line: Do you think the franchisor is employing their attorneys to protect your interests? Would you ever imagine not insuring your vehicles or home against the very remote chance of loss?

  • Are you ready?
  • Will you be ready to resist?
  • Will you ever be a match by yourself?

Most dues to a group are no more than what you would have paid every 3 or 4 years to a local, generic attorney, anyway. Do you really think you can even come close in matching the franchisor’s ability to buy the best accounting, legal and strategic advice? The battlefield is in the numbers, strategy and discipline, my friend.

  • United you stand a chance.
  • Divided?

An active, well-funded, professionally managed franchisee group is a lifeline when the climb is too steep to go it alone.


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