One potential marketing strategy for franchisors is to set up two-year agreements with star franchisees to assist in the expansion of regional areas without selling those areas a master franchises. In doing so the franchisor can have more control over the marketing of new franchises and say over which territories and agreements will be entered into, without giving up any control.
The fee structure could be a percentage of franchise fees in each sale and a percentage of royalties. The duties of the star franchisee [Regional Team Manager] should be clearly defined we decided for our endeavors and so I came up with these set of rules for our company, perhaps this might give you some ideas if you are considering expanding your franchise company. Below is my list of responsibilities and rules that I used in my company;
Regional team manager will not build or maintain a web site on behalf of The Company or the Franchisee. A web site will be furnished and maintained at the expense of the Franchisor on behalf of the regional team manager.
Regional team manager will be responsible for collecting all royalties from franchisees in their exclusive territory and forwarding all such monies immediately upon collection to The Company. will forward the regional team manager's portion of collected royalties no later than the 30th of each month.
Regional team manager will be responsible for franchisees in their exclusive territory. Regional team manager agrees to visit each franchisee in their exclusive territory no less than once a month. Any marketing, technical, employee or other issue franchisees might have will be addressed by the regional team manager.
For this service the regional team manager will receive 50% of the collected royalties for each franchisee in their exclusive territory.
It is understood and agreed upon that nothing in this Agreement authorizes the regional team manager to make any contract, agreement, warranty or representation on Franchisor's behalf or to incur any debt or other obligation in Franchisor's name and that Franchisor shall in no event assume liability for, or be deemed liable hereunder as a result, of any such action.
Well this is what we did in our company of course I cannot give you legal advice as I am not a two-fit, lying, thieving, scoundrel, attorney. So, you need to get with one of those professional parasites and sit down without shooting them and ask them their advice on how to run your business and pay them $300 to tell you what you just learned here from me, someone who actually has had to make a payroll and who has actually done it. Consider this in 2006. If you are an attorney; go screw yourself. [in a nice way].
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/. Lance is an online writer in retirement.
Franchise is used to expand business activities in the world using other company's products,rights and patent. It is used by every businesses.
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