Like this article? PLEASE +1 it! Evan Signature
Evan Carmichael Top Header about About Home Profiles articles Tools forums inspirational quotes About facebook Twitter YouTube Blog
Share for a Cause











Refunding a potential franchisee

Guest post by: Fred Hassen

Article Overview: This article goes over the various reasons and point/counterpoint on why we decide to refund in full a potential franchisee that is not going to cut it, even during their time of schooling, and up until graduation.

Free Download - By Fred Hassen
Name: Email:

Refunding a potential franchisee

We have a guarantee for those that are attending our dog training school for franchisees that some people in the industry think is just plain crazy!

Our guarantee simply states that Sit Means Sit Franchise, Inc. will refund 100% of licensing fees you pay us if, at any time during the three week training program, it is deemed by the instructors that you will not successfully complete the SMS Franchise Owner Certification.

We’ve heard all the arguments from people in the franchise business about why they think this is absurd. A few of them that come to mind are:

1. ‘Refunding their money at that time, would in essence have given them a free education’.

2. Have you ever had to refund anyone?

3. Couldn’t they go out and try to then just start a business on their own?

4. You are willing to put that in writing?

The answer to all of these questions is ‘Yes!’.

Why do we have such simple, pervasive guarantee and put it in writing?

Our dog training franchise school wants the right type of business minded individual, with the right type of ethics, work habit, people skills, and a desire to pay attention and learn

a proven system like ours.

Of course the people have been previously screened, been through their due diligence, and have put their best face forward during this process. With that being said, sometimes

we have to make the decision that it is still not the right fit in some cases.

We have a reputation to protect. If the fit is not right, we continue our search for another individual for that area.

We know our business very well and we feel strongly that if we feel the need to give the refund, the chances are very strong that the individual will not have what it takes, nor the support

to be successful on their own for our system. It would be unjust to take money for an education that they won’t be able to use. We’ve been right every time.

Related Articles
  Landing That First Franchisee
  WHO IS THE IDEAL FRANCHISEE?
  Franchisees and The 90 Day Window
  The FTC on Earnings Claims Statements
  Franchisee/Franchisor Relationship Requires Mutual Trust, Respect
  The franchise sale
  Make the Most of the Franchisee/Franchisor Relationship
  Franchising Strategy
  Reasons to Use a Franchise Consultant
  Franchisee checklist - the franchise agreement
  Safeguards Inherent In The Franchise Business Model
  What Do Franchisors Look For in Potential Franchisees?
  Funding the franchise business - franchisee
  Things to consider when becoming a Master Franchisee
  Maintain a good working relationship with your franchisor
  Quiznos: What Went Wrong
  Don't Let the Franchise Fee Scare You!
  Franchise Owner To Be? 18 Questions To Ask Current Franchisees
  Franchisee Checklist - assessing the business proposition
  How Can You Get Out of a Franchise?

Home > Franchises > Fred Hassen > Refunding a potential franchisee >
Article Tags:

About the Author: Fred Hassen
RSS for Fred's articles - Visit Fred's website

   Fred Hassen is the CEO/Owner/Founder of Sit Means Sit Dog Training http://www.sitmeanssit.com , and is the world's leader in bringing expert dog training approach and state of the art technology to the field of dog training, making it feasible for business minded people everywhere to learn how to leap frog to the head of their industry by becoming a Sit Means Sit Dog Training franchise owner.
 
   Sit Means Sit dog training believes that 'Talk is Cheap' and backs it up with hundreds of videos of their product.  To be a successful dog training franchise, Fred Hassen believes your product has to 'Walk the Walk' and not just 'Talk the Talk'. 

   Fred Hassen has hosted his own Television talk show, radio show, and has been the guest of many others. Sit Means Sit dog training and it's trainers have performed at events throughout the world and have appeared numerous times on "Animal Planet", and "The Outdoor Channel".  


Click here to visit Fred's website
Dashed Line

More from Fred Hassen


Related Forum Posts
Franchisers approach for Negotiations Franchisers approach for Negotiations - One thing to consider when preparing for negotiations with a franchiser is that some items are required to be disclosed in the UFOC, the franchise fee, for example. If you want the franchiser to reduce the franchise fee by $10,000 so you can afford the franchise, the franchiser will be obligated to disclose that his franchise fee is $X, except for the franchisee in Virginia who only paid $X-$10,000. Franchisers will never agree to such a modification for one franchisee because all future potential franchisees will know about it and ask for the same reduction. A reasonable approach is necessary to negotiating with a franchiser
Dispute between Supplier and franchisee Dispute between Supplier and franchisee - This very much depends on the attitude of the franchiser. A good franchiser would be more than a little concerned about a franchisee not paying the bills purely from the perspective that it might tarnish the brand name. However, be aware that this might be struggling franchisee with a company that couldn't give two hoots about you being owed money. Personally I would be inclined to approach the person first and inform him or her of your intentions to talk to the franchiser before you actually do. This at least gives the franchisee the chance to rectify the situation.
Dispute between Supplier and franchisee Dispute between Supplier and franchisee - The franchisee is a totally legally separate entity from the franchiser, and frankly it is no business of the franchiser. And the most important reason you are also likely to totally alienate the franchisee. I don’t know enough about your relationship with franchisee to comment on the rights and wrongs: but I do know this - If there was even an ounce of "right" on my side in the non payment, and certainly if my problem was the franchise model was not working, I would make it my mission to delay payment all the way to the courtroom door anyone who was so sneaky as to go behind my back to the franchiser.
biting off more than you can chew biting off more than you can chew - Some people are scared of growth... for fear they will bite off more than they can chew. A good example of this is a franchisee I know who is selling his business after only less than 2 years in service, not because the business is not doing well, but because he is afraid he will not be able to handle it at it's full potential. Although his dog care type franchise can house up to 125 dogs a day, he has limited himself to only taking in 35 dogs a day for fear he will not be able to handle more than that. He also doesn't want to hire more people because he is worried about the overhead. He got at a comfortable level of income for himself and simply stopped the franchises potential right there. I suppose there are many different reasons why someone will not allow their business to grow, but I thought I'd share this with you as one example.
Franchise Territories Franchise Territories - [quote="franchisebrief.com":1dfdbmhp]This information will be included in the UFOC. If the UFOC states that there is no protected territory, then I would be suspicious. If UFOC states that each franchisee will have its own territory, then there should not be any problem.[/quote:1dfdbmhp] Any franchises that I'm familiar with have a territory or distance provision that prevents franchisees from overlapping their territories. This is only a problem when you have an underproducing franchisee - but they should also have a provision to give a franchisee a set amount of time to make a go of the location and territrory. Shri


Recommended Article for You close

  Landing That First Franchisee

Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.



Featured Article

Bottom Footer



Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

Why Use an Advertising Agency

Mistakes Made by New or Inexperienced Sales Staff

Are You Listening?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.