What changes would be needed to restore fairness to the franchise relationship? To restore a win-win scenario in which both franchisor and franchisees are given the respect and authority as should be afforded to business owners? What would a Fairchise opportunity look like? Your ideas and input are invited. by Sean Kelly
(UnhappyFranchise.Com) In recent decades, Franchising has become, to an increasing extent, Unfairchising. Increasingly one-sided franchise agreements, mandatory arbitration clauses, NDAs and nearly non-existent federal oversight & enforcement have given franchisors the power to dictate nearly every aspect of the franchise relationship with impunity.
Many franchisees claim the “business ownership” once provided to franchisees now resembles indentured servitude or sharecropping.
The FAIRCHISING Initiative is an open exploration, idea exchange and discussion of what changes need to be made to restore the fairness to franchising, and to restore the promise of a Win-Win relationship franchising once provided.
The FAIRCHISING Initiative asks: What would a Fairchise look like – contractually and in practice?
Which parts of the modern franchise agreement and relationship are to blame for the current inequity in franchising? which should be modified or abolished?
Which parts of the modern franchise agreement and relationship are necessary to maintain brand integrity and cohesion… and should be preserved in the FAIRCHISE model?
The term FAIRCHISING was coined by Businessman Jim Lager, who was a top franchisee for two major franchise brands and is now CEO of the independent Texas Hose Pro company. In mulling his options in expanding his successful hydraulic hose sales and service company out of the Texas market, Lager began to consider how he would modify the current franchise model to restore some of the good faith and fair practices that enabled him to become a successful franchise business owner.
Industry expert, writer and UnhappyFranchisee.Com publisher Sean Kelly suggested an open discussion to hear ideas and opinions from others in the franchise industry as to what elements of the franchise relationship need to be restored, improved or added to create a franchise relationship that benefits all parties in a fair and equitable way.
Your ideas and opinions are invited. Please share with comments on any post, or by emailing them to ADMIN at UnhappyFranchisee[at]Gmail.com. Anonymous contributions are welcome.