Franchisee loses his pizza franchise

A former franchisee of Pizza Pizza in Ontario lost his franchise for allegedly falling behind on payments to the franchisor.  This whole relationships seems to have gone mismanaged by both sides.  The franchisee wasn’t keeping good sales records and delivery drivers were impatient with customers, and the franchisor let bad practices continue for too long.

http://news.guelphmercury.com/News/Local/article/524725

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Article by Ryan Knoll

Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115. Read 448 articles by
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  1. This is where communication should be open to avoid problems like this. Open communication, cooperation and the valuing of best practices should be very important aspects of franchise operational process. Good communication channel open for both the franchisor and the franchisee should resolve issues immediately to the best possible way and avoid further troubles.

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  • Re: De-Identify February 7, 2012
    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... […]
  • Re: De-Identify February 5, 2012
    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... […]
  • Re: De-Identify February 4, 2012
    Quote from: jerichox on February 01, 2012, 08:27:34 AMJust 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 ... […]
  • De-Identify February 1, 2012
    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.... […]
  • Re: franchise directory January 8, 2012
    Remember if  you approach a franchisor and that franchisor uses brokers you should be able to reduce your franchise fee by the price of the commision they would pay to a broker.    You have bargaining power before you sign the FA not after!!!!Moreover... […]

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