If you are in a franchise and have a territory dispute with another franchisee you need to prevent a lawsuit use dispute resolution techniques to resolve the dispute. Competing with other franchisees is a subject that franchisors would prefer not to need to talk about. This is a real problem for some types of franchises. For instance mobile service businesses and home based franchises.
There is really no reason for you to sneak into fellow franchisees' territory to market or to do services. There is plenty of work in your territory. Some franchisees may disagree and say:
"Jim got a better territory than I did, that is not fair."
This may or may not be true, but you did agree to your franchise and you should have the ethical standards as a human being to live up to that agreement, not run to your lawyer or cheat the system. The integrity of the system to survive needs honest team members, unlike the rat pack primate politics in government where ethical standards means only getting blown off once a day by a male homosexual lobbyist. In franchising if the brand name is strong and you are doing well by your customers; actually all territories are good and your market mix should provide you with enough different kinds of services that you can make a substantial dollar amount in your city or township.
If your home territory consists of a small town, your exclusive territory may be a combination of towns, a county or an entire region. As I study the franchise agreements of the top franchise service companies and home based franchisors it is apparent that there is business everywhere.
Let's take the franchise company I run for instance; The Car Wash Guys, a mobile pressure washing and car washing franchise system. Our franchisees can wash mobile homes in a less high-income area. More depressed areas house larger trucking company fleets because the land is cheaper. This is why trucking companies that need acres of land to park trucks and thousands of square feet of warehouse space locate in these areas. So you may actually make more money in a low-income area then someone that has an exclusive franchise in let us say, Beverly Hills, CA, Malibu, CA, Long Island NY, or Naples, FL franchise. It is not always necessary to have an area with a high-income level population or an area whose work force drives expensive types of cars in this case as many potential franchise candidates usually assume. In any franchise system you should look at the total income potential of your exclusive territory before signing the franchise agreement because you might actually make more money in a town that has a depressed economy but has a larger commercial base clientele.
Competing with other franchisees is really not a way to level the playing field. All that will do is create animosity when you are caught and make the other franchisees mad at you, that is true in all the case law studies and franchisors I have discussed this with. You do not need an ambulance chasing attorney to figure that one out or tell you that you can have permission to use the restroom in your own business for that matter.
If you make the other franchisees in a franchise system mad at you, the chances of them referring additional accounts to you will be less and less. So remember, competing with your own team is not a game you want to play. Instead you want to stand strong and united. Play to win, play on the team to win. Play in your area in a zoned defense pattern. It is not every man for him self; it is a zoned defense team effort. Your competitors may cross boundaries. They may compete with you one day, Jim, Brett, Bill or Will or Steve or Brian the next. This makes it extremely hard on your competitors and likewise it would be extremely hard for you to compete with all the people I just mentioned on your own chasing them around the county trying to service everyone.
Instead you want to use them as a source and a point of power for generating leads and additional references. And contact names of people who work in these larger companies so you do more services and make a better return. Thus make more money and buy more service units and expand in your territory until you hit your market penetration peak. This target could be very high and hopefully is. If you are in a franchise system work it like a team and keep the lawyers away from the seam, they want to break in and destroy you American Dream. Think about resolving territorial issues and disputes before they happen.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs
Culver prom limo ..It is estimated that 78% of all small business start-ups... Read More
Everyone wants to succeed in life. Most people want to... Read More
When the recent Games of the XXVIII Olympiad came to... Read More
You've been meaning to tend to the administration part of... Read More
Not sure how to start a small business? This guide... Read More
-- The One Pager Shortcut Series --An effective and compelling... Read More
Whether your target audience is in your neighborhood or across... Read More
If you own a small business, then you know the... Read More
Contrary to popular belief, small businesses can survive a crazy... Read More
A janitorial cleaning service is one of the best businesses... Read More
Many self employed professionals find themselves overwhelmed, frustrated, and confused... Read More
Often smart entrepreneurs look for out of the way businesses,... Read More
In these days of insecurity and uncertain futures, the tendency... Read More
I have a confession to make. My name is Caroline... Read More
When someone owes your small business money, you certainly feel... Read More
Are the promoters and consultants destroying the market for Reverse... Read More
The way you manage your money is one of the... Read More
Why do you need an account plan?When you first decide... Read More
The FTC Franchise Rule maybe changed, as the Federal trade... Read More
How is your pipeline structured?I assume most of you have... Read More
I believe the number one reason why a business will... Read More
There were only an estimated 1800 active franchisors in this... Read More
If you run a pressure washing business it is a... Read More
How do you make sure you have the business solutions... Read More
The employer / employee relations environment has been constantly evolving... Read More
Wood Dale limo ..How many hours do you work a week? When was... Read More
Cleaning concrete is tough and there is an easy way... Read More
Here is an interesting case study of a company, which... Read More
One of the major complaints in the QSR Quick Service-Fast... Read More
Financial Consultants are one of the fastest growing industries today.... Read More
You know your prospects need what you sell. You know... Read More
Franchisors of home based and mobile businesses need to carefully... Read More
Small business owners can relieve a lot of their own... Read More
Are you a motivational speaker who consistently gets rave reviews... Read More
Why does research and education play an important part of... Read More
The employer / employee relations environment has been constantly evolving... Read More
As small business owners we're in business to make money... Read More
Many small business startups fail within the first 2 years... Read More
It's a strange anomaly.Most people who set out to start... Read More
A suggestion box is a really good idea for your... Read More
As I am preparing for my attendance to the CoachVille's... Read More
If you are in a franchise and have a territory... Read More
Over regulation of small business is so intense it is... Read More
Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More
How do you make sure you have the business solutions... Read More
It is an American dream to own a business. But... Read More
Why does a good business relationship rely on having some... Read More
1. Leadership Is Learned ? While many people appear to... Read More
A few years ago, I visited Beijing for the first... Read More
Time. As a small business owner, it's the commodity you... Read More
Small Business |