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

The Brand Called You
The best brands always try to do the right thing, so that their reputations will remain unsullied. But beyond that they grow, evolve and get better with time, while maintaining their special qualities from the past.
Branded! How To Build Brand Identity
You've heard the saying, "Image is everything." It's not only true, it's also a commanly-used slogan in advertising. Businesses like McDonalds ("I'm lovin' it") and AllState Insurance ("You're in good hands") use slogans, or tag lines, to help build brand identity
Donald Trump On Branding - Brand Identity Guru
Love him or hate him, one thing is certain: Donald Trump is a successful guy. We don't have to sum up his accomplishments for you, because his name speaks for itself.
Brand Image - Brand Identity - Brand Strategy - Brand Identity Guru
Consumers perceive and accept many brands within a certain trade group in different ways. By personifying a brand (How would you describe brand X if it were a person?) we can find out, that for instance consumers perceive brand A as a young, impulsive, lively, attractive, energetic woman full of ideas.
Logo Design - Corporate Identity Branding - Brand Identity Guru
Like it or not it's who you are. Your corporate Identity touches all aspects of your business and plays a vital role in your customer's overall feeling with your organization.
Counterfeit Branding - Representing True Globalisation!
From cigarettes to fashion accessories to food products to medicines, more than 50% of the global market are filled with counterfeited products. Do you realise that the Nike t-shirt that you are probably wearing right now may not even exist in the design portfolio of Nike Inc.
Fast Forwarding Your Business
If you think only big corporate names need to think about things like brand names, think again. Your brand says a lot about you and your business, and that's as true for a one person home-based operation as it is for a multinational conglomerate.
Your Small Business Name -- Important?
You bet a name is important. Many small business owners try to come up with a clever name for their business rather than one that explains what they do.
Branding: Bring Back the Jingle!
Did you grow up in the '70s and '80s? If so, you probably have a slew of campy jingles from various TV commercials filed away in your brain. Today, advertisers still use jingles to help identify their brand, but not nearly as much as they did "back in the day.
Logo-ize For Instant Identification & Increased Awareness
The task of creating an indelible impact on the memory of your target market is arduous but can be made much easier with a well thought out logo. The word comes from the ancient Greek where it was used in philosophy and theology to mean "the divine reason implicit in the cosmos, ordering it and giving it form and meaning.
It's A Lot Like Spinach Stuck Between Your Teeth – How Can You Tell You Need Marketing & Design Help
Having a bad marketing strategy or business image is a lot like a piece of spinach wedged in your teeth, a bad-comb over or leaving your fly open – everyone sees it, it looks bad, but no one will tell you to your face
10 Secrets for Free Media Placement
Why pay a high priced PR agent when you can get free media placement to promote your product, service, or book?Follow these top ten tips for 2005 and it willbe your most profitable year yet!1. Write an attention grabbing headline.
Brand Love, Part 2
Last issue, I talked about increasing your Brand Love-- meaning to increase the affection that prospects and customers feel toward your business.Why?Because increasing "affection" will build relationships.
Naming Names... How to Name your Business
Sometimes the best inspiration comes from hearing about the deconstruction of other company's names. For you, I am happy to share how I came up with "Slice A Day :: your slice on marketing".
Branding Advertising Agency
Branding used to be a fancy business word, but it is becoming more and more used in everyday business meetings. Finally! For decades, big corporations have used in-house, very well paid brand managers - someone in charge of managing everything that relates to the brand, including design, package and partnerships.
Brand Identity Company - Brand Identity Guru
Hiring a brand identity company is very important. In every marketing campaign, your company should have a solid brand identity on which to hang its hat.
You'll Bring a Parade of Business to Your Door!
Parades happen in every big city and many small towns. They are fun, relaxing and most people are there because they really want to be.
Effective Branding...Whats in a Name!
Ask any marketing executive and they will tell you that a company's name is golden. There are certain associations that people have with a name, one that invokes emotions -- good or bad.
Branding Fiasco -- Better Be Who You Say You Are!
Our experience as customers offers great instruction into the concept of branding. Come with me on a recent "experience" and you'll see what I mean.
Build and Manage Successful Brands with BIOs (Brand Impression Opportunities)
What a fascinating time we live in; hundreds of new products enter the marketplace every day. More books are published each year than used to be published in entire decades. We have access to a seemingly endless availability of news, television and radio stations, communication devices, and information.