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FIELD OF VISION
By Spence Vidulich, O.D.
AFA Board of Directors
I’ve owned four Pearle Vision franchises for 13 years. Apparently, I could
have skipped kindergarten, high school and college because everything I
needed to know about business, people and life I’ve learned in the 13 years
I’ve owned my franchises. From managing employees, negotiating with vendors,
managing construction projects, obtaining financing to fixing plumbing
problems--anything and everything could be encountered on a typical day.
But, since this ENews is related to the business aspects of franchising,
I’ll stick to my observations regarding franchisors and franchisees.
Right now within our system we are experiencing the second sale of our
franchisor in the last eight years. These events have highlighted many of
the vulnerabilities faced by franchisees in all systems and the franchisee’s
need for unity in order to protect ourselves from these vulnerabilities. To
take such action requires a field of vision beyond the four walls of one’s
own business and our individual franchised systems.
While it’s great to trust people to do what’s right, my experience in
franchising has shown me that if you let someone have an unfair advantage
they will act on it. Many franchisees believe, mistakenly, that because they
have a contract they are protected from abuse by their franchisor. In fact,
most franchise contracts allow franchisors almost unlimited rights and
impose on franchisees numerous obligations. Once our system was sold (or, as
in the current situation, pending regulatory approval) franchisees began to
worry about many issues among them:
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Will the support offered my brand be changed?
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Will the brand still be here a year from now?
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Will there be cross brand encroachment?
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How can / will my sales data be used against me?
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Will my access to franchisor specific programs be
altered?
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Will my franchisor place new purchasing requirements on
me?
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Will my franchisor run sales or demand pricing that
hurt profitability?
Many of these issues are not even addressed in franchise
agreements but rather by franchisor policy and procedures over which
individual franchisees have even less control. The first time during my
tenure as a franchisee that our franchisor was sold, a joint committee of
our independent franchisee association and our advisory council was formed
to address these matters--to preserve the limited rights of the owners in
the system and to bring about needed reforms. While we were successful in
lowering royalties in the new agreement, this level of cooperation among
franchisees unfortunately did not continue and it remains to be seen if it
will occur again during the current “crisis de jour.”
Addressing these issues requires an ability to see beyond our businesses and
our independent associations. If you’re an individual franchisee don’t be
fooled into thinking that your franchisor will deal differently with you
when push comes to shove. If you’re the head of a strong, independent, brand
specific association don’t think you have enough clout to change things on
your own. You need the support, expertise and camaraderie of other
franchisee associations. Even franchisors believe they need to stick
together over the long haul—witness the long history of their trade
association.
It is my belief - and the mission of the American Franchisee Association
(AFA) - that in order for franchisees to get what they believe they bought
(i.e., a business that the franchisee owns and therefore can sell) and where
the franchisor does not impede the franchisee from reaping the fruits of
his/her investment, the legal and regulatory environment surrounding
franchising must change. The AFA always has and always will continue
to work to educate the public, the press, our state and federal governments
and other franchisees to bring about these types of lasting changes.
The AFA is the only organization that watches out for the economic interests
of franchisees. The AFA is the only organization that blows the whistle on
those chains who’s franchisors don’t operate in good faith with their
franchisees. The AFA has benefited a lot of folks over the years…when
they’ve needed help and even when they didn’t think they needed help. I hope
an AFA membership card is in your wallet like it is in mine. If not, broaden
your field of vision and join the AFA today.
You can contact Spence Vidulich at
sviddoc@hotmail.com.
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