Because of this, the franchise company must work onerous to make certain that every franchisee feels like they’re a part of the household. Those at the head workplace and particular person retailer homeowners or managers ought to talk overtly and work collectively to search out the right operational balance. On the one hand, HQ should acknowledge that native franchise homeowners know their market best, and they’re qualified to make sure choices. HQ should draw the road in terms of sure tasks requiring approval from the principle workplace, corresponding to pricing, employment laws, or pricey marketing initiatives. On 22 May 2007, hearings were held in the UK Parliament regarding citizen-initiated petitions for special regulation of franchising by the government of the UK because of losses incurred by citizens who had invested in franchises. Mr Mark Prisk MP suggested that the costs of such regulation to the franchisee and franchisor could probably be prohibitive and would in any case present a system which mirrored the work already being accomplished by the BFA.

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