Franchisor Policies for Unlicensed or Sold Territories

Franchisors often have issues when they own a brand which has service vehicles; where franchisees wish to operate in non-franchise assigned territories. We had this as a re-occurring issue in our franchise system. We came up with this policy, which is also in our Confidential Operations Manuals. Here is a sample policy for our franchisees:

"Unlicensed Areas"

"If you are called into an unlicensed territory for service, you may service that particular client. You will obviously pick up additional clients in those areas from referrals, leads and people who see the truck. It's ok to service these customers. However, you must:

Not have over one-third of your clientele out of your exclusive territory

Give up these clients if we sell that adjacent territory to a new franchisee

You must let us know which other area you are working in

We don't recommend washing cars outside your exclusive territory because it will cost you many hours in travel time over the course of a week. Fifteen minutes here, twenty minutes there. It adds up, trust us. We have assigned you an exclusive area, which will more than suffice. After all:

You know the area

You live in the territory

You have a perfect mix of business

We spent money marketing that area

If you are occasionally called to a non-assigned or unlicensed territory and you find another franchisee is also working that area, it's ok to split the area amongst yourselves with the understanding that which ever buildings/customers they were doing prior to your coming in that area you should honor. You and the other franchisee might both have to give up those customers if we sell or assign that territory and retreat back to your exclusive territory. Be advised that this can happen and it has before. If these customers you have been servicing are very important to you, you may want to purchase that additional area. We of, course, would love for you to have this as part of your exclusive territory because you are one of our best franchisees. Contact your regional director to start the negotiation process. And, by the way, don't bring your attorney to the negotiations. This is a very informal procedure.

We are all on the same team. If you can handle the additional customer demand and our staff likes you, I'm sure we can negotiate a fair deal for all concerned."

If you are a franchisor of a home based or service franchise system you must address this situation or you might wind up in court defending what is generally understood by all parties anyway. Think about this and get your policy ready and let it be known.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Branding Information:

Related Articles

Simple Risk Reversal Formula Will Send Your Sales Into Space (1 of 2)
Make A Bold Promise Then Back It Up With An Awesome GuaranteeOnce you know what problem you, your service or your business can solve or what genuine benefit you can deliver then guarantee it!A bold promise backed up with an awesome guarantee:* Enables You To Significantly Raise Your Price* Gives You A Genuine Differentiator* Increases Sales and Commitment* Demonstrates Rock-Solid Certainty In Your Abilities - People Find This Confidence Very AttractiveIf you don't currently guarantee what you do then I bet it's down to one of these three things..
Brand Extension; Going from Consumer to Commercial
As more and more home pressure washers are sold at leading retailers such as Wal-Mart, Sears, Home Depot, Cosco, etc. We are seeing companies offer products in brand line extension to service this niche.
How To Create A Brand That Sticks
Most people, when they hear the word branding, think logos - but in fact, branding is really much more than that. A brand involves blending the image, purpose, and focus of your business, with your core marketing message, and coming up with something which will stick in the minds of people who encounter it.
Logo Design Tips
Logos can be described as visual icons that provide a unique identification element to a business or product. Logos provide quick visual recognition of a Company which in-turn builds branding.
Branding Your Products Is Important
I was chatting with a couple of friends, all of us are either copy writers or graphic designers?or both?.in the advertising industry, so, naturally, our conversations leaned towards the topic.
Could Ray Kroc have founded McDonalds in the Era of Sarbaines Oxley?
Over regulation of our free markets is stifling our growth in America and killing the next superstar Entrepreneurs. Let's discuss just how bad it really is.
What is Private Franchising? It is Nothing Someone Made It Up
The Federal Trade Commission has an obligation to the general public, their stated consumer education mission and to the over regulated franchising industry and the small business operators running Biz Ops to separate the two business models by way of legal definition. Any failure to completely separate them will trigger additional problems down the road and cause the current on-going process of rule review to continue, without any formalization for decades.
Brand Identity Guru - Is Your Brand Vital?
The world is not waiting for you?or your product or service. Or your firm.
Shattering the Branding Myths
If you've been online long, you're sure to have seen many "gurus" give their ideas about branding. However, much of what you read simply isn't true.
Corporate Identity - A Rough Guide
A rough guide to corporate identityThe tabloids report the millions spent by large corporate companies on their logos as a scandal..
FTC Reviews The Franchise Rule
After more than a decade since the last attempt to update the 1970's Franchise Rule The Federal Trade Commission is at it again. May I ask why we are looking at reviewing these rules for franchising, where no problems exist? Why we are looking to tighten up ambiguities, which over time have occurred in this sector, when we should be dismantling the over regulations choking the industry? Why we are trying make rules upon rules, where no rules are needed since no problem really exits? Why can't we use the red magic marker approach and start drawing lines thru massive amount meaningless dribble required in these disclosure documents?Let me explain this philosophical thought for a moment.
When Search Engine Marketing and Trademarks Collide
In the world of marketing, branding issues are always an important part of any campaign. Companies work hard for their name to be recognized as a quality organization and a leader in their field.
Is It Legal? - Indecent Naming With Tradition
When Mitsubishi launched a new car with the name "Pajero" on the Spanish market, it became obvious very soon that the name chosen was not optimal because it immediately was the subject of jokes due to its homophony with a Spanish expression related to masturbation.The same happened to Ford's model "Pinto" (Portuguese for male genital) in Brazil where it was quickly renamed into "Corcel"(horse).
How to Work with Your Graphic Designer
As a graphic designer, I can tell you something right here, right now, right off the bat without blinking?.the graphic design process is a pain in the butt.
The Big Uneasy: Clearing the Clouds of Guess
People often come to me to assist them with developing their brand because they are unable to accomplish the business success they desire. They're experiencing what we call the Big Uneasy--the state of being when things are hard.
The MOST Expensive Mistake You Can Make
Most people who own a small business have a huge passion and talent for the product or service they provide. Some people have a business degree.
I Hate My Logo! What You Should Get For Your Money and Why
This is not a how-to design a logo. This is a guide to educate you on how an experienced designer can help you through a project whose outcome you will need to live with for years.
Are You Brand Worthy? Are You Brand Worthy?
Branding is a one hot topic, although it is wildly misunderstood. To make things even more confusing, branding is often tossed in the same basket as marketing which makes its application to an entrepreneur or sole-practioner even more unclear.
All About Branding
In this article i will explain how you can make your brand an succes.Corporate branding.
What About Me? What You Need To Know About Me-Marketing
What about me? Are you asking yourself this question? If not you should be. Don't wait until you are in crisis mode when you are losing your job or your business before you think "what about me?"Here are a few points to consider.