The lockdowns during the pandemic greatly increased the use of video conferencing. This has made it easier for franchisors and prospective franchisees to engage in discovery meetings, but we are now seeing that this is causing problems. Over the past year the number of disputes that we have helped to resolve, where this was a factor, has shot up. It is easy to see why.
Added to this, and also connected to video conferencing, is an increase in the number of franchisees who have signed franchise agreements with franchisors in different legal jurisdictions. This obviously makes the business of securing a successful outcome in the event of a dispute much more difficult.
It is very important to visit a franchisor’s head office and meet more than one person when doing so. A reputable franchisor will almost certainly have a physical office, and staff who work there. It will be possible to see people working and business being conducted. None of that is possible over the Internet.
A reputable franchisor will always want to meet the prospective franchisee because this is the person who will be representing their brand. If they are happy with a Zoom meeting, in which they are not even certain that they are seeing the correct person, one should ask the reason why. The most likely answer is that they just want to secure the initial fee as quickly as possible.
The golden rule is don’t join a franchise unless you have visited the franchisor’s head office. Don’t join a franchise if the franchisor hasn’t insisted on a face-to-face meeting.
Zoom, FaceTime or Teams are ideal for many interactions but using them as a replacement for the initial meeting with the franchisor can lead to disaster.