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#1 23-05-09 15:42:09

Disky
Verified Member
From: Central Scotland
Registered: 10-03-05
Posts: 1,333
Website

Franchise Agreements ?

I know this topic has been covered a few times relating to the "larger companies", however,  I'm thinking of bringing in a couple of ADI's that i have known for a few years and making my school a bit bigger.

Both the guys are top ADI's and well respected in our local area for being "decent folk", both indy at the moment. However, if we do join forces i think it needs to be done properly due to the additional advertising that would have to be made etc.

As such, i see that the DIA sell Franchise Agreement forms and wondered if anyone has used these or is using them, and what their thoughts on them were. they are easily customised with your own logo etc and i think that although we can trust each other implicitly,  it would be good business sense and would protect all of us to the same level as it will be designed as non profit making.

many thanks
Ray

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23-05-09 15:42:09

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Re: Franchise Agreements ?




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#2 23-05-09 18:21:02

Colin Martin
Verified Member
From: Southsea
Registered: 21-01-05
Posts: 2,465
Website

Re: Franchise Agreements ?

If you do it yourself you need to list all the things you promise to do for them and they promise to do for you. This forms an agreement.

If you are planning to work together, I have always thought the legal trading entity of a Co-Op would work well in these circumstances and might be worth investigating.


Colin Martin
The Bright Red L http://thebrightredl.com
Instructor Apps http://drivinginstructorapps.co.uk
Apps Video channel https://www.youtube.com/colinbythesea

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#3 23-05-09 20:50:20

Disky
Verified Member
From: Central Scotland
Registered: 10-03-05
Posts: 1,333
Website

Re: Franchise Agreements ?

Hi Colin, thanks for your reply.

My intention/idea is to run the school, taking say £25 per week from each "associate" and then investing it in advertising so no profit is gained by me. All the funds will go to advertising the school, of which the "associates" will get the work generated on a postcode / milage allocation, or perhaps 1 each until we all have enough work to keep a full diary. what i mean by this is that if 3 orders came in and there were 3 of us, we would each get 1 new pupil each. If that makes sense.

All instructors would have the same headboard, but would still remain independant ADI's working for the school.

Had a quick look at a co-op, but then all associates would be directors which i could see making it a bit difficult to manage effectively. Like our local T.O.A. you have to buy in and then sell when you want out, which realy sounds too much hassle smile

Ray

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#4 24-05-09 22:26:49

golfball13
Verified Member
From: Chelmsford, Brentwood, Essex
Registered: 22-08-07
Posts: 244
Website

Re: Franchise Agreements ?

Hi,

I've recently taken on an instructor and after much consideration, and talks with other driving schools, I decided not to use a contract. From what I understood, general contracts can miss bits you need, and if you draw up your own, unless it's done professionally, you run a risk of getting it torn apart should there be a disagreement.

At the moment, I've supplied the instructor with my own school signs, she pays a monthly fee, and I provide pupils  and help when needed. So far the setup is working well.

I'd be interested in what other people think/use themselves as I'm still learning smile

Rob


RPL Driving
Driving lessons in Chelmsford, Brentwood, Billericay and other areas of Essex

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#5 25-05-09 10:38:21

Target
Verified Member
From: Winchmore Hill North London
Registered: 17-01-05
Posts: 5,695
Website

Re: Franchise Agreements ?

Personally Ive never understood this no contract format.

We get our pupils to sign an agreement on the first lesson, but let Adis/Pdis come and go when they please.

Personally Id tie up the lose ends just incase your ***** on in the end.


Approved Driving Instructor ADI(car)
Cardington Grade (A) Diamond Special DIA MSA IAM ROSPA (Silver)
QEF Mobility Qualified
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BTEC Qualified Assessor
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#6 25-05-09 10:47:57

KevB
Verified Member
From: Amesbury
Registered: 06-06-08
Posts: 1,725
Website

Re: Franchise Agreements ?

wether it is written or not, an agreement exists.
The whole reason for it being written and signed is in the event of a disagreement.

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#7 25-05-09 22:03:17

Disky
Verified Member
From: Central Scotland
Registered: 10-03-05
Posts: 1,333
Website

Re: Franchise Agreements ?

Personally Id tie up the lose ends just incase your ***** on in the end.

Nice one smile

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#8 26-05-09 14:55:23

Colin Martin
Verified Member
From: Southsea
Registered: 21-01-05
Posts: 2,465
Website

Re: Franchise Agreements ?

Hi,

I've recently taken on an instructor and after much consideration, and talks with other driving schools, I decided not to use a contract. From what I understood, general contracts can miss bits you need, and if you draw up your own, unless it's done professionally, you run a risk of getting it torn apart should there be a disagreement.

At the moment, I've supplied the instructor with my own school signs, she pays a monthly fee, and I provide pupils  and help when needed. So far the setup is working well.

I'd be interested in what other people think/use themselves as I'm still learning smile

Rob

A contract drawn up by a commercial solicitor can cost tens of thousands of pounds and when we consulted a franchise contract specialist a few years ago she said the traditional driving school arrangement is too near pyramid selling to put into a contract.

The commercial answer is to be a customer/supplier arrangement where as a franchise you supply services and the Instructor agrees to uphold standards and make reasonable provision to carry out their business using your name. As price cartels (two separate businesses agreeing prices) are illegal you need some provision to make pricing work. Charging booking fees and honouring offers in marketing you are doing to provide the service are ways to do this but insisting on a price list is not. Any breach of this law could make an agreement invalid should it have to be used in the courts as you cant make somebody break laws just because they sign an agreement with you.

No agreement is not no agreement, your agreement is verbal, try defending who said what to whom. You may leave things out of a written agreement but you will have a lot more in it which will be useful should a disagreement ever occur.


Colin Martin
The Bright Red L http://thebrightredl.com
Instructor Apps http://drivinginstructorapps.co.uk
Apps Video channel https://www.youtube.com/colinbythesea

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