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Franchise Compliance
A number of years ago while I was the executive for a franchisor, I was asked for a variance by a franchisee who said he was planning to attend the annual conference, but got called away because of a sick relative. I faced a dilemma because the annual conference was very important to the system, but it is hard to reject a personal request. Also, I realized that if I refused, I might face some blowback if he complained to other franchisees about our seemingly harsh policy.
My situation was not unique. Every franchise system chief executive encounters similar situations in which a franchisee has a good reason for not complying with a rule, or in which the infraction is fairly minor. But how can a franchisor be sure about where to draw the line and how strictly to enforce the rules that are set out in the franchise agreement or operations manual?
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