De-Identify

[jerichox]

Just wondering if you guys think its a smart idea for a franchisee to de-identify his store? Also.. Franchises normally have a list of items that need to be changed to the color of the walls to the lights that hang..

How would you go about doing this. If at all.

[Franchise Pundit]

Just wondering if you guys think its a smart idea for a franchisee to de-identify his store? Also.. Franchises normally have a list of items that need to be changed to the color of the walls to the lights that hang..

How would you go about doing this. If at all.

It's all a function of what's in the franchise agreement. Sure some people do it, but it is usually in lesser branded franchises. You won't find a McDonald's frachisee convert his store to a Paul's Burger Hut because it is forbidden in the franchise agreement in several ways. They'd be sued and a court would require them to cease and desist.

In some states non-compete agreements aren't very enforceable, but at a minimum you couldn't appear to trade on the franchisor's trademark or confuse the customer into think you are the same as your previous identity. If your lease isn't perfectly timed with your franchise agreement, you often have to negotiate with either the landlord or franchisee to extend or shorten as needed.

Are you looking to de-identify at the end of your franchise agreement period, or are you considering just ceasing to be part of the franchise system?

[jerichox]

it would be leaving early..

Its a Franchise that has lost over 30 units in the past few years. and is not living up to what we bought into.. advertising fee's are not being used on anything for the franchisee. and there is no support from the franchise in anyway.

[FuwaFuwaUsagi]

There are several issues here.

1)   Ethics – though your franchisor may not have lived up to your expectations if they are meeting the letter of the law then I am not sure you have the moral upperhand.  If you signed on to pay and advertising fee without having a board of zees set up to oversee the disposition of the funds then it seems they acted within their rights.
2)   Bearing in mind I am not a lawyer, I think if you debanded and made a go of a similar concept they would have a very good case for going after you for lost royalty and advertising. 
3)   In general if this is a me too concepts it is very easy to establish your own brand and grind “chain” competition into the ground.  There are many ways to do this.

Lastly, I would consider point number one carefully.  Are you sure you want to surrender your scruples so easily?    There is much to be said for being man or woman of your word and setting a good example for your children.