Frequently Asked Questions
Q. Are there any specific circumstances where the franchisor is allowed to the terminate the agreement?
Answered by Keith Roberts Managing Director, All Trades Network
"There are many circumstances where a franchise agreement can be terminated. The main one is where the franchise owner is deliberately fraudulent in their dealings. Under declaration of the management service fee is a prime example. This could involve work being performed which is within the scope of the franchise but passed to an associate company which invoices the customer. This avoids the franchise owner paying management service fees.
Another circumstance is when a franchise owner is not following the system that franchisors have spent time, effort and money developing and documenting, which can compromise the whole franchise brand. A brand is a promise and if it's not consistent, customers will fail to receive the experience they were expecting.
Fortunately, termination is relatively rare. Properly organised franchise systems have procedures for dealing with such problems. These allow the franchise owner to be alerted to an issue and gives them the opportunity to correct the matter."
Q. How will buying a franchise affect my work/life balance?
Answered by Dorian Gonsalves, Operations Director, Belvoir
"Although buying a franchise can ultimately improve work/life balance, the launch of any new business initially requires enormous focus, attention and effort. However, one of the benefits of franchising is that you never do this alone and at Belvoir we have invested heavily in franchise support, offering new franchise owners access to a personal business advisor for the first 12 months to help them deal with any challenges they may face.
"Running an independent business can be quite a lonely affair, and having nobody to share concerns with can be problematic. At Belvoir there is always someone on the end of a phone for franchise owners to talk to. Additionally we organise quarterly Belvoir network group meetings where franchise owners can discuss various topics and benefit from each other's experiences in a non-competitive environment. This has proved to be extremely effective.
"A good franchisor, such as Belvoir, offers a range of training courses to franchise owners and their staff. This will ultimately enable the franchise owner to relinquish some of the day-to-day running of an office and concentrate on strategizing and growing their business. It is at this stage that I would say the work/life balance can dramatically improve."