Most franchises have a no-fly zone attached or rather an area of exclusivity surrounding the location which is written into the UFOC and attached franchise agreement. But what happens when the franchise is a mobile business? What happens when it is a mobile service franchise like a mobile dog groomer, mobile auto detailer or a sophisticated and strategically run window cleaning business?
Some of these franchises do not come with a territory but do come with all the rest of the wonderful things that franchises come with such as a Brand Name, on-going support, training and specialized equipment. These types of franchises are not to be over looked. Many people want an exclusive territory, but reality shows that brand name strength is much more important.
Such a mobile franchise without an exclusive territory reminds me of Chem-Dry, I see that it works in a survival of the fittest sort of way and beats the heck out of the road to know-where for franchisees of other companies as the Franchisor expands and loses interest after selling the areas. As a retired franchisor I am still unconvinced that "everyone" should buy a franchised business, most people should "NOT" be self employed.
For some of course, hopefully with proper support they can own their own business and do it in a franchise if that is their choice. In our company we use to negative sell, I did not want anyone in my company who was weak or not sure about it, if they were afraid, I would have them do a "ride along" with a current franchisee. If the hands on ride-along did not cure the fear then we did not wish to have them on our team. Franchise buyers who are afraid or unsure of themselves, usually do not like the idea of a non-exclusive territories, but they ought to understand sometimes it really is for their own good in the future.
I understand mobile franchise companies with "no territory" deals, since I played Center Half Back and rover in soccer for years. I can tell you that with a mobile franchise it makes sense with large customer accounts, as one or two large accounts with a regional bank or company could make the individuals Blind Business, Window Washing Business or Carpet Cleaning Business extremely profitable.
I will not deny that this issue came up often enough, as we had these issues with overlaps for our franchise modules. One individual would have 5 airports to clean aircraft AircraftWashGuys.com overlap other Car Wash Guys territories but only for aircraft and we allowed first rights to the local franchisee at a reduced cost + training and specialized equipment. Same with our Concrete Wash Guys ConcreteWashGuys.com concept.
The main point of this article is to let you know that not having an exclusive territory might actually be in your best interest if you are thinking about buying a franchise. You need to consider this and think it through before shying away from the sale of artificial property (exclusive territory) clauses in the franchise agreements.
L. Winslow is an Economic Advisor to the Online Think Tank, a Futurist and retired entrepreneur http://www.worldthinktank.net . Currently he is planning a bicycle ride across the US to raise money for charity and is sponsored by http://www.Calling-Plans.com and all the proceeds will go to various charities who sign up.
Tags: auto detailer, brand name, chem dry, exclusivity, franchise agreement, franchise opportunities, franchises, franchisor, mobile auto, mobile business, mobile dog groomer, mobile franchise, mobile service, no fly zone, reality shows, service franchise, specialized equipment, survival of the fittest, ufoc, window cleaning
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