Franchise Expansion Thru Regional Team Manager Agreements

By: Lance Winslow
Submitted: 2007-01-17 11:42:33
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

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

Article source: Expert Articles

Most Recent Articles in Franchise category

  • Six Reasons Why Business Franchising Works - By: Nazeer Daud
    Franchising can allow your business to grow at rapid pace, and gain a presence in new markets. Although there are disadvantages to franchising your business, and although it will not suit all business models, franchising is often an under-used tool among business owners that are looking to scale their operation.
  • Franchising: Questions You Should Ask A Franchisor - By: Nazeer Daud
    If you're starting a business, you may have considered purchasing a franchise rather than starting a company from scratch. This is particularly common in certain sectors, and has many solid advantages over starting a business on your own.
  • 7 Characteristics Of Business Models Perfect For Franchising - By: Nazeer Daud
    When rapid business growth is on the menu, you might be considering franchising as a way to sky-rocket infrastructural development and revenue acceleration. For many this is a good choice, however for others it just isn't going to work.
  • Franchising Your Business & What To Look For In Franchisees - By: Nazeer Daud
    Franchising your business can help you to achieve scale much quicker than you would otherwise be able to. It also means that you won't have to raise as much debt and equity financing as if your business decided to go it alone.
  • Buying A Business Franchise - The Basics - By: Nazeer Daud
    Before you buy a business franchise, you should make sure you're ready. From choosing the franchise that's right for you, to making sure you're right for the franchise, this article takes you through the steps you'll need to cover in order to get your franchising dreams off the ground.
  • Guide- Business Franchising Territories - By: Neerja Shukla
    Business franchising arrangements are usually conducted on the basis of a particular geographic area or territory. The franchisee breaks up the licensing of his business between different franchising territories, to ensure there's no overlap of competition between franchises and to geographically grow the business nation wide or even world wide.
  • Business expert shares key factors to consider before purchasing a franchise - By: Kyle B
    Business expert shares key factors to consider before purchasing a franchise Know your strengths and stay focused
  • Business Franchising Territories - By: Nazeer Daud
    Business franchising arrangements are usually conducted on the basis of a particular geographic area or territory. The franchisee breaks up the licensing of his business between different franchising territories, to ensure there's no overlap of competition between franchises and to geographically grow the business nation wide or even world wide.
  • Key Business Franchising Contract Terms - By: Nazeer Daud
    Business franchising agreements are commonplace, and tens of thousands of these contracts are signed every single day around the world. More often that not, the agreements underpinning business franchising arrangements are written by qualified and skilled commercial lawyers experienced in this kind of arrangement.
  • Why Business Franchising Is A More Popular Investment Choice For Banks - By: Nazeer Daud
    Critical to starting a business is having the appropriate finance in place, and money alone is the number one reason most - as much as 90% - of business ventures fail during the early start-up period.