Sunday 24 January 2021

Can I defer my franchise payments?



You shouldn't even be asked to pay franchise payments let alone defer them.  This blog will help you see that there really are better opportunities in the driving training industry.


Some national franchises are still taking a flat fixed fee per week from franchisees in the order of £60 in these lockdowns.  Others are charging full whack for 3 out of 4 weeks in a month and then trying to dress that up as "one week free".  How generous given the fact that you are simply complying with a governmentally enforced lockdown.  These are not insignificant fixed costs, reports of £159/week + are now being exposed on national media.


I've been saying this for a long time now; there really isn't any need (apart from contractual) to stay with a franchise who dictates this kind of terms.  With the BIG TOM Franchise, if you were to take a holiday, get an operation, be in lockdown then as you are not working, you do not pay franchise fees.  It really is a pretty simple concept, and I am pretty sure we are not alone.  I am still hearing about driving instructors who remain in these franchises where they are paying while being in a lockdown.  


We are now coming up to suffering 12 months of this pandemic's effects, and now really is the time to be getting a fresh start with a franchise that treats you with respect.


On my franchise, your payments are all tied to the customer bookings; it is all automated and a slick process.  But of course, if there are no customer bookings because of lockdowns then naturally there are no franchise payments.  That's how I would like to be treated if I were running a franchised business.  


But it is equally true if an unexpected health issue arose (heaven knows we barely get warnings with some of these), or perhaps if you had a desire to have an extended leave period.


You really should expect a professional franchise to have the flexibility to handle these situations that can sometimes crop up.  I really do question the values behind an organisation that financially penalises in times of national crisis. The only way you can truly protect yourself from these contracts is to employ the services of a legal advisor prior to the signing of the contract.  It may seem like a hassle, but it could possibly prevent no end of problems in the future.


But there are only so many times I can say this.  Ultimately, you are the one who is throwing money down the drain at the moment.  You need to do something about it.


 

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