Franchisers Can take Actions to Make You Lose Money
When purchasing a franchise you have the advantage of being your own boss, but still have support from the franchiser. There are some actions that the franchiser can take that would cause you to lose profit and that means the possibility of losing your franchise.
Stand Up Against the Franchiser
The way that franchisers or companies are able to build a brand through the investment of the franchise operations and the people that invest in them. Franchises allow both the franchisor and the investor purchasing a franchise to profit. This is a proven business concept for both to benefit, the franchisor or company to market their brand more widely and the investor to make monetary profits.
When the franchiser changes the rules or acts unfairly, it can cause the investor known as the franchisee to lose profits. It is difficult for one franchise owner to stand up to the franchiser or company to force them to treat their investors fairly. When the franchisee joins other investors in a class action lawsuit it can force change.
There are some common tactics franchisers or companies might use that is unfair to the franchise holder that can make them lose profits.
• A franchiser could want a franchise or group of franchisee’s to fail, in a way that will force termination or because they want someone else in that market. This is unfair to the person that has invested their money to become their own boss, and instead have been setup to fail.
• Franchise operations all must follow the same policies, and the franchiser cannot make the policies different for one franchise and not all the rest that are representing their brand or product.
• The rules that franchisee’s agree to follow to meet the corporate standards helps to protect the brand. When there are violations that are false it can make it impossible for the franchisee to meet the standards if they keep changing.
If you suspect the franchise you are invested in has fraudulent practices you need to speak with the attorneys at Ehline Law firm to join a class action lawsuit and hold the franchiser accountable for their actions. Ehline law can be reached at 888-400-9721.