No, they may not have the contractual opportunity to intervene, just as if I leave a location on unfavourable terms, I may not be able to compel the landlord to solve a noxious odour smell. But that's the risk I willingly take when I negotiate that lease.
And where franchises are concerned, I have little empathy for the franchisor. They chose franchising as a business model for its advantages, such as making franchisees finance their growth, and having a captive market for products and services they compel the franchisees to resell.
I think when you choose to be a franchisor, you're willingly accepting the inherent tradeoff of growth in exchange for the risk that your reputation and brand will suffer if franchisees behave badly.
I'm sure Ford isn't happy that some of its independent dealers take a hot seller like the new Bronco and mark it up $10,000 or $20,000 above MSRP for customers who ordered one thinking they'd pay MSRP.
But the headlines in the newspapers rarely say "Reggie's Westchester Ford-Lincoln is ripping customers off," the headlines say "Ford Dealers are ripping customers off," and the public rarely gives a lot of thought as to whether Ford can do anything about it, they think, "Ford ought to do something about it."
And where franchises are concerned, I have little empathy for the franchisor. They chose franchising as a business model for its advantages, such as making franchisees finance their growth, and having a captive market for products and services they compel the franchisees to resell.
I think when you choose to be a franchisor, you're willingly accepting the inherent tradeoff of growth in exchange for the risk that your reputation and brand will suffer if franchisees behave badly.
I'm sure Ford isn't happy that some of its independent dealers take a hot seller like the new Bronco and mark it up $10,000 or $20,000 above MSRP for customers who ordered one thinking they'd pay MSRP.
But the headlines in the newspapers rarely say "Reggie's Westchester Ford-Lincoln is ripping customers off," the headlines say "Ford Dealers are ripping customers off," and the public rarely gives a lot of thought as to whether Ford can do anything about it, they think, "Ford ought to do something about it."