If you make sales predictions for your Franchisees and really cannot justify those numbers, be prepared to add “Your Honour” to the end of every sentence you make. Gelare International has just found that out. As much as they felt they had done “the right thing”, the Federal Circuit Court and Judge Riley totally disagreed.
This is another case that should highlight to Franchisors that they need a process and sales prediction tools if they are going to make any statements to their potential Franchisees.
Peter Buckingham is the Managing Director of Spectrum Analysis Australia. He is a certified Management Consultant, and a Fellow of the FCA and IMC.