After 25 Years Quick Print Franchisees Cannot Leave Network

Quick Printing magazine comments about a typical problem in franchising. Franchise buyers typically are not very concerned about agreement clauses that kick in 25 years in the future. The article points out that quick print franchisee contracts that were signed "DID NOT terminate at the end of 25 years. In fact, in many agreements, owners unwittingly agreed not to compete against the printing franchise for the next two years within a 5-50 mile radius of their current location. Some of the agreements, especially some of the more recent ones, also call for giving up rights to the 'business telephone listing' as well as the customer database!" Imagine what would happen to a quick print business if it had to adhere to a non-compete clause for two years.

It continues, "owners who signed up in 1980 have agreements expiring this year. Owners who signed on the dotted line in 1981 or 1982 are looking at expiration dates in 2006 and 2007, respectively. We aren't talking about a just a few leaving each system, but dozens and dozens of top performers in each of the major franchise organizations.If they leave, it would represent the loss of hundreds of thousands of dollars-dollars that cannot simply be replaced by the sales of new franchises because that simply isn't happening. You don't sell many new franchises in a mature industry, and that's where we are at today..."

Photo by Michelle Roberts c/o stock.xchng