Thunderbike Nelson aren't Triumph dealers any more

[denill]

This is a warning to any business person to properly/realistically value their businesses. "Goodwill" is largely worthless. The only true value any business has are in its assets -- tangible things that can be sold for money. Unfortunately many businesses aren't bought or sold on that basis.

The dealerships that motorcycle shops may have can't be sold for money, therefore they're not assets. Relationships that staff have with clients can't be sold for money, therefore they're not assets either.

However as a customer, it's the intangible things that make one bike shop better than another: the quality of the service you get being absolutely paramount, in my opinion. Again, if the owners sell up, what guarantees are there that the new owners are going to maintain standards? It's the intangible values that will keep customers loyal and cash flowing through the tills, but I wouldn't put too high a price on that when buying a business.

A very good summary of the facts. So many have people have paid money to other people without applying due diligence or even common sense.


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[denill]

From the article it sounds like Triumph NZ didn't denied the ability to purchase. They gave the dealership to another business. The incoming purchaser now sees the business is worth bugger all and did not go ahead with the purchase.

Franchises do not come (well, in my experiences anyhow) with a signed agreement or contract in any form. So the reality is - that the importer can decide not to sell, or to sell/supply, their brand to whichever dealer they choose.

[HenryDorsetCase]

Franchises do not come (well, in my experiences anyhow) with a signed agreement or contract in any form. So the reality is - that the importer can decide not to sell, or to sell/supply, their brand to whichever dealer they choose.

Motorcycle franchises perhaps, but most of them come with a raft of documentation. Perhaps that is the issue?

One I looked at was for a well known one operating in the Wimmins Helf area. Hilarious. "Pay us $X as an application fee. In USD too. Oh and any disputes are to be settled in Delaware, USA" "Oh, and we can do whatever we want whenever we want, but you can't". Usually franchises are terrible ideas.

[denill]

Motorcycle franchises perhaps, but most of them come with a raft of documentation. Perhaps that is the issue?

One I looked at was for a well known one operating in the Wimmins Helf area. Hilarious. "Pay us $X as an application fee. In USD too. Oh and any disputes are to be settled in Delaware, USA" "Oh, and we can do whatever we want whenever we want, but you can't". Usually franchises are terrible ideas.

Yeah, you're right. My BAD. Of course franchises come with written agreements and as you say, almost without exception giving the franchisor ALL the rights!

I should have said: Motorcycle Dealerships do not come (well, in my experiences anyhow) with a signed agreement or contract in any form.

In fact it would be better for dealers to be franchised, but that is not the terms that importers choose to trade under. They are emphatic that the dealer can claim to be an Xxxxxx Dealer, but not claim to be an Xxxxxx Agent.

So that's exactly why Triumph could do what they did. Piss off the Importer and youre gooooonne.

[Gremlin]

Doesn't need to be a franchise... just look at some of the reseller applications. If we (distributor) think you (reseller) are wrong, then you are. If you complain, and we think you're wrong, then you are. You may dispute something with our permission.

I thought they wanted to sell the product?

[Hitcher]

I thought they wanted to sell the product

That's all they want to do. They don't want to have anything more to do with it once it's sold, that's the problem.