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Green Motion CEO offers advice to Franchisees

Green Motion CEO offers advice to Franchisees

Green Motion CEO Richard Lowden featured in this month's Elite Franchise Magazine, giving advice and guidance to franchisees on the question - Endgame: What happens to franchisees when franchisors leave the network? Click here to read the full article.

Making it clear franchisees are very much a priority for him, Richard Lowden, founder and CEO of car rental franchise Green Motion International, says: “When building a franchise network, you have an ingrained responsibility and duty of care to your stakeholders. My priority remains building a network that will benefit both our customers and franchisees.”

Lowden concedes that while it’s not his plan to leave the Green Motion network, it’s a strategy on the radar of some franchisors. “The most important thing for anyone in this position is to create a succession plan that provides a strong platform for the next owner to spring from,” he says. But who would serve well as an heir to the franchise throne? High-performing franchisees, upper management and larger firms can always become potential candidates to take over.

Looking at the car rental sector in particular, Lowden offered a prime example that he’s witnessed with Avis swallowing up franchises Budget and Payless. “When this happens, it's vital the new franchisor makes the transition as seamless as possible for franchisees,” he says. This isn’t always the case though and, regrettably, some franchise takeovers can leave franchisees out in the cold. “In the more ruthless cases – such as Hertz's acquisition of Dollar Thrifty – some franchisees simply didn't have their agreements renewed,” Lowden alleges. “[While] that might have been good for the owner's bottom line, it isn't the way to grow a stable and prosperous brand.”