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Make the Most of the Franchisee/Franchisor Relationship
Written by: Michael HemenwayArticle Overview: A healthy relationship between the franchisor and franchisee is essential in running a franchising business successfully and the relationship rests on mutual trust and good communication.
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Make the Most of the Franchisee/Franchisor Relationship
The success of a franchising business hangs totally on the franchisee/franchisor relationship. And the relationship itself rests on two pillars: trust and communication. The whole business of franchising is about trust. The franchisor trusts the franchisee; that’s why he offers the franchisee his brand-name that he has built with years of hard work.
On the other hand, the franchisee puts his life savings in the hands of the franchisor, trusting that his business model will deliver what it promises. So, it is very imperative that they maintain the mutual trust with each other. The franchisor will have to trust the franchisee that he can run the business exactly the way he has trained him to. If he interferes too much or keeps too much control, then the franchisee will soon feel suffocated.
Similarly, the franchisee must not do something that will break the trust. He must not change the system of running the business without informing the franchisor. He is supposed to remember that he is a member of a team and his actions will have ripple-effect on the entire franchising chain.
Say for example, if a fast-food chain is not strict with food-safety measurements and is caught, then far-off units too lose customers, resulting in downgrade of profit. The way this can be avoided is only by keeping the channel of communication open.
While meeting the franchisor for the first time, the franchisee should keep a note of what questions are to be asked. Each and every point of the UFOC and other documents should be clarified. Moreover, a franchisee must not hesitate to call up the support lines whenever there is any problem they cannot handle. To make themselves heard, they are required to attend the national and regional meetings too.
Even a single-unit operator has all the rights to a good and cordial franchisor/franchisee relationship as does a multi-unit operator. As for the franchisor, he is required to make sure that he is always available to the franchisees. Keep all lines of written communication open like email, newsletters and other study materials. But the franchisor ought to talk to the franchisee from time to time, because many a things are cleared when two persons talk face-to-face. Do not discourage a franchisee, if he has some suggestions for running up the business; as he can know more about the local market than the franchisor does.
Furthermore, the franchisor has to trust the business sense of the franchisee. In conclusion, it can be said the franchisor/franchisee relationship is lot like a marriage: the partners have to trust each other, learn to listen to each other and give each other some room to grow.
Article Tags: brand name, business model, fast food, food chain, food safety, franchisee, franchisees, franchising business, franchisor, mutual trust, pillars, regional meetings, relationship, ripple effect, safety measurements, single unit, unit operator
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About the Author: Michael Hemenway RSS for Michael's articles - Visit Michael's website Founder/CEO of brandEXPANSION the only firm of its kind serving all aspects of franchising. With our industry background and successful franchise units established around the world, we have a time tested strategy to assist you in locating, developing, advertising, marketing and executing the optimal franchisor and franchisee strategy. brandEXPANSION brings over a dozen years of hands on experience in the field. This gives us an insider’s perspective on the business of franchising, which is an invaluable asset in supporting your objectives. We simplify the franchise experience by providing on going consulting and support designed to deliver the most profitable franchise investment you can attain. brandEXPANSION has placed franchise units in over 1000 locations nationwide. This includes the strategy and writing of franchise documents, over 600 franchise real estate locations selected, over 200 construction projects completed and over 250 proven franchise companies currently represented. The company also operates the leading franchise-industry social networking site, http://www.FranchiseUltraLounge.com. Click here to visit Michael's website Looking for Franchise Finance You May Be Sitting On It Already Franchising Is a Better Path to Success than Opening a StandAlone Business Webinars Can Be a Valuable Franchise Industry Tool Complicated Tax Laws Mean Tax Franchises Boom No Matter the Economy Some Franchise Categories Continue to Grow |
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