PRO101 - Your Rights as a Franchisee
PRO101 - Your Rights as a Franchisee
Introduction
Whilst we are all obligated through our contractual relationships, the following is provided to highlight your rights as a Franchisee in the Jim’s Hazardous Material Removal division.
Note: some areas in this manual paraphrase your Franchise Agreement. Where the contents differ, the Franchise Agreement shall have precedence.
Definitions
Term/Abbreviation
Definition
Policy
It is the policy of Jim’s Hazardous Material Removal that Franchisees shall be fully informed about their rights under the Franchisee Agreement.
Work Anywhere
Franchisees have the right of first refusal to all work in their territory.
Franchisees may not market in another Franchisee’s territory however may take work that has arisen as a result of a referral or a lead from the Call Centre.
The Call Centre will only pass on a lead inside your territory to another Franchisee where you have indicated that you are not available or are unable to perform the required service.
Change Franchisor
If a Franchisee has a problem with their Franchisor, they should first attempt to address the issues with their Franchisor.
If this is unsuccessful, they should discuss it with the Divisional Franchisor. If the Divisional Franchisor is unable to assist, the Franchisee may contact National Office.An option is available, with agreement of all parties, to change the Region in which you reside.
There are no costs associated with this, and all clients will be transferred; however, you will be required to change to a territory within the new Franchisor’s region. The new Franchisor must agree to the change.
Any personal business costs such as business name change are the Franchisee’s responsibility.
Vote out Franchisor
A majority vote of Franchisees may force a Franchisor to sell their region after a three-month period during which they have an opportunity to attempt to regain the Franchisees’ confidence.
Divisional Non-compliance
If you believe your Divisional Franchisors are not providing the services you expected from them when you joined Jim’s Hazardous Material Removal or if you have any other complaints, you may speak to Jim Penman, National Franchisor at Jim’s Group who is responsible for dealing with Divisional non-compliance.
Jim can be contacted by phone or email:
Phone:
(03) 9780 9834
Mobile:
0413 126 766
Email:
Ownership of Clients
Your clients belong to you. You are not required to pay lead fees for your clients if they contact the Call Centre. When a customer rings the Call Centre, they are asked if they have used Jim’s Hazardous Material Removal before. If the answer is yes, the Call Centre will make every attempt to identify the Jim’s Hazardous Material Removal Franchisee to whom they belong.
You may sell your clients to another Franchisee within Jim’s Hazardous Material Removal. You may also ask another Franchisee to test and tag your clients when you are unable to do so. No one may canvass in your territory without your written permission.
Sale of Customers and Splits
One of the benefits of a Jim’s franchise, and one of the ways you can increase your income, is through the sale of clients or by selling a split. The sale of clients is a transaction between you and another Franchisee. The Franchisor however can become involved if the purchaser wants the protection of the 45-day period. If the Franchisor is not involved, there are no commissions payable to the Franchisor.
A split is where you sell a part of your territory and/or clients to an incoming Franchisee or existing Franchisee. When you sell a split, the Franchisor is paid 20% commission. The benefits of selling clients or a split include:
·A cash injection which can be used immediately for items such as a holiday, vehicle upgrade, debt reduction, a better lifestyle balance – time for family.
·Realise a price increase in territories (or pay for the original territory fee).
·New customer base.
·Get rid of customers that no longer seem worth the effort.
·Less travel (condense your active territory).
·Another van on the road - more exposure, re-invigorate and re-challenge yourself.
Initially, when there are vacant territories available, you may choose to just sell clients. The benefit of this is that you can sell a small number of clients that are easily replaceable, allowing you to concentrate on the clients you want. It also assists the new Franchisee to more rapidly build his/her business. We recommend that your business plan includes an option to sell clients/and or a split at some stage of your business and suggest you talk to your Franchisor about the best way to make this happen.
Right to Hire Employees
As your business grows, it is possible that you may need to hire employees. Guidelines for hiring employees are covered in the procedure PRO135 Employing Staff.
Note: we reserve the right to require you to terminate the services of
unsatisfactory employees.