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Log In / Register | Dec 19, 2014

Franchisees Need a Different "Level the Playing" Field Strategy

Franchisees in California never had a chance to get the bill passed. They did show that there is significant numbers of franchisees that illustrated the need for a more level playing field. That is very different from the past efforts when franchisees were afraid to be in the public eye and didn't show up at the hearings or write letters. Kudos to the franchisees that stepped up in California.

Over the years franchisees and their representatives have had some success in passing legislation and some failure. Of the 18 states that have some sort of franchise regulation, very few have a "good faith and fair dealing" clause.

The original legislation that was submitted by franchisees was a better bill for California, but that got tabled and the "Good Faith Bill" was allowed to continue. That right there was the death knell.

Ultimately the successful franchise systems come to realize that collaboration is the key to strong franchise relationships, the settlement with the Edible Arrangements illustrates the power of collaboration. The sad part of that is franchisee association and the franchisor ending up spending $100's of thousands of dollars in litigation that would have ben better invested in the brand.

Franchisees and their leaders need to rethink their strategies.

 

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