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How Franchisees Can Promote Positive Franchise Relations

Guest post by: Ed Teixeira

Article Overview: A franchise relationship works best when the franchisor and the franchisees have a positive attitude about their relationship. However, historically the onus for promoting positive franchise relations has been placed upon franchisers. This article presents the ways that franchisees can contribute to the relationship.

How Franchisees Can Promote Positive Franchise Relations

Virtually every article dealing with promoting positive franchise relations, places the responsibility upon the franchisor. In maintaining positive relations with its franchisees, the franchisor is advised to maintain on-going and open communications and seek franchisee feedback on a regular basis. Also, the franchisor is urged to hold meetings, publicize franchisee accomplishments and initiate other activities, which can help to promote positive relations with its franchisees.

When franchise relations go astray some of the problems that can arise include:
1. Needless energy spent on dispute resolution, which can include legal fees.
2. Certain issues or disagreements become magnified.
3. System growth may be negatively impacted.
4. New franchise sales can suffer.
5. Franchise resale’s values could become depressed.

Anyone with a strong knowledge and understanding of franchising would tend to agree with the above. As someone with a great deal of franchise experience I’m compelled to add another element to the subject of franchise relations, namely, that the franchisees also bear a responsibility in this relationship.
The franchisor and franchisee have a vested interest in a successful franchise program. Both parties have a financial stake in the relationship with the mutual objective of achieving profitable results. This being the case it follows that franchisees have the same stake in positive relations as franchisors.

The following are several ways franchisees can facilitate positive franchise relations:

1. For franchise systems with a minimum of 50 franchisees the franchisees should request and urge the franchisor to help organize a franchise advisory council. If the franchisor resists then the franchisees should take the initiative. I’ve seen countless examples of franchise advisory councils defusing potential problems and helping to resolve issues before they get out of hand. Yet, some franchisors resist advisory councils for fear they can become too powerful. This is not a valid reason to discourage there formation. Franchisees have every right to organize their own franchise advisory council. The Franchisor should play an active role in this process, in order to promote positive franchise relations.

2. Franchisees should direct meaningful suggestions to franchisor staff as opposed to chirping to fellow franchisees. The value of e-mail cannot be overstated. In today’s business world access to the highest levels of an organization is available via e-mail. There is value in reaching the right person and documenting the message. Franchisors don’t want to be in the position of defending why members of their staff didn’t respond to a suggestion or comment.

3. The more successful and credible franchisees should maintain contact with the Franchisor president or CEO. These executives want to have a positive relationship with their franchisees and in most cases will welcome feedback from their franchisees. If there is a potential problem developing within the franchise network, an alert delivered by a franchisee will be appreciated by the Franchisor.

4. Franchisees should avoid introducing their attorney into a dispute unless and until:

a. They have exhausted all remedies with the franchisor
b. There is a compelling or urgent reason, such as Franchisor financial problems
This doesn’t mean that a franchisee shouldn’t seek advice from their attorney, but rather they avoid taking action until its absolutely necessary

5. If franchisees have an immediate problem requiring the intervention of the Franchisor, the franchisees should request a meeting or conference call ASAP. They shouldn’t allow a problem to fester or spin out of control.

In summary, although the responsibility for promoting positive franchise relations rests upon the shoulders of the Franchisor, franchisees should take an active role towards the same endeavor. By working together both parties will be in a better position to achieve a lasting and positive relationship.

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Article Tags: franchise relations, franchise relationship, franchisees, positive attitude



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