Welcome to October’s Tubz Vending roundup, our dedicated spot for sharing news, ideas, how tos, handy resources and interesting information from the world of franchising. Every month our team of franchising experts collect their favourite recent posts from across the worldwide web, and each month we choose our favourite pieces to share with you. Stand by for handy tips and franchising insights…
This month: discover how and why to avoid the “absolute discretion” trap, get to grips with performing due diligence before signing up to a franchising opportunity and learn why the number of female franchisees is now on the rise.
Beware the Absolute Discretion Trap
Any franchise agreement requires serious attention, from franchisers, franchisees and both parties’ legal advisors. Yet, if your franchise agreement includes phrases like “absolute discretion” or “sole discretion”, the agreement requires even closer study – and potentially review. Why? Because these expressions could spell serious trouble with little or no recourse to rulings from arbitrators, mediators or the courts.
Giving sole discretion to a franchiser is a very dangerous abdication of power for franchisees, handing over complete control and the final say to the franchise in question in every single instance. Instead, phrases like “reasonable discretion” and “consent will not be unreasonably withheld” point to a healthy future relationship between both parties. Before you sign anything, get to know the issue. This blog published on the AAFD website will help you to familiarise yourself.
A Helpful Guide to Franchise Due Diligence
If you listen to proverbs and old wives’ tales, you’ll know all too well that “fools rush in”. In very few instances in life is this more true than when you’re considering investing in a franchise. This excellent blog post from McColm Matsinger Lawyers may cover franchising in Australia, but a great many of the lessons about performing proper due diligence before jumping in feet first with a franchise are applicable both worldwide and in the UK.
From researching the opportunity, to reading all paperwork thoroughly and talking to other franchisees in the system, this blog put together by Christine Matsinger is full of helpful pointers, good advice and some very valuable “dos” and “don’ts”.
US Female Franchisees On the Rise
Surprised businesswoman looking at laptop pc, astonished woman with shocked face and open mouth.
In a trend we’re confident is also reflected on British shores, The UPS Store franchising blog has shared the news that the number of female franchisees in the States are on the rise. Data accessed via the 2015 State of Women-Owned Businesses Report shows that almost 30% of all US business are now female owed, with 9.4 million women-owned businesses now operating in the country. Get the full story here.
Do you think that female franchising is on the rise? Are you a woman with a franchise? We’d love to hear your thoughts. Share them with other readers below or get in touch today with our franchising team via info@tubzbrands.co.uk
