Entries by Hamilton Pratt

Is a franchisee an employee of the franchisor?

It is a fundamental principle of franchising that franchisees operate their own business. Franchisees are not a branch or subsidiary of the franchisor’s business, but a wholly independent business that operates subject to the restrictions and obligations contained in a franchise agreement and detailed operations manual. In a number of countries – notably the US […]

Is a franchisee an employee of the franchisor?

It is a fundamental principle of franchising that franchisees operate their own business. Franchisees are not a branch or subsidiary of the franchisor’s business, but a wholly independent business that operates subject to the restrictions and obligations contained in a franchise agreement and detailed operations manual. In a number of countries – notably the US […]

Is a franchisee an employee of the franchisor?

It is a fundamental principle of franchising that franchisees operate their own business. Franchisees are not a branch or subsidiary of the franchisor’s business, but a wholly independent business that operates subject to the restrictions and obligations contained in a franchise agreement and detailed operations manual. In a number of countries – notably the US […]

Is a franchisee an employee of the franchisor?

It is a fundamental principle of franchising that franchisees operate their own business. Franchisees are not a branch or subsidiary of the franchisor’s business, but a wholly independent business that operates subject to the restrictions and obligations contained in a franchise agreement and detailed operations manual. In a number of countries – notably the US […]

Who sets employee’s salaries in a franchise?

The important point to remember, in relation to franchising, is that the franchisee’s business is his – it is not the franchisor’s.  Franchisees generally make all business decisions subject to any restrictions that may be found in the franchise agreement or in their manual. Franchisors provide franchisees with the system that they need to follow […]

Does a higher investment level mean higher potential profit?

It should do!  Clearly there is absolutely no point in a franchisee investing very considerable sums of money on a franchise business that is unlikely to provide adequate returns.  Most franchise agreements last for five years although five year agreements should be renewable at least twice by a franchisee.  As a rough rule of thumb, […]

How can I tell if my business is franchisable?

It is easier to tell whether your business is not franchisable!  If your business is unsuccessful, or if the business is successful because of you and your special abilities, if it is a business that depends on skills that cannot be trained, or which requires a substantial amount of training, or is a business that […]

Q: What’s a franchise information memorandum?

A: A franchise information memorandum or FIM is a term used by some involved in franchising to describe a prospectus that is made available to someone who enquires about taking a franchise. Clearly, prospective franchisees are keen to obtain information about a franchise business that they have seen either at a franchise exhibition, on a […]