Monaco Coach Corp. Chairman and CEO Kay Toolson told the company’s dealers last week that he sees the manufacturer-dealer relationship will evolving away from “dealer agreements” that allow dealers to inventory several manufacturers’ models toward franchise agreements that tie dealers closer to the manufacturer whose products they represent.
“One of our visions for the future is to make a slow but deliberate transition from dealer agreements to franchise agreements,” Toolson said during Monaco’s national dealer meeting June 28-30 in San Antonio, Texas. “Let me say, this may not be for everyone, but if you weigh the benefits, it may be worth considering.
“We know that too often a successful dealer finds that the business without him or her has little value in the marketplace other than its land and fixed assets,” Toolson said. “That makes ownership transitions difficult.
“We see no reason why we can’t work together to build the image and value of our franchises to give you a better and more profitable opportunity to transfer or sell your franchise,” he continued. “It may not work for all of you, but where it does, it will be a great benefit to both of us and open up options for a succession plan or exit strategy that everyone faces.
“Of course we can’t forget about our mutual customers,” Toolson said. “We believe that building the franchise image will drive more business to your dealership, causing both sales and profitability to grow.”