Creating A Better Franchisor/Franchisee Relationship

Franchising is a proven way to grow a business and get it off the ground. However, many entrepreneurs don’t realize that the relationship between franchisor and franchisee is just as important as the quality of their products or services. The relationship between you—the franchisor—and your new franchisees must be carefully nurtured for both parties to succeed. Here are some tips for creating a better franchisor/franchisee relationship:

Have A Clear Vision For The Business

Vision is an essential point for the franchisor to consider. If you don’t know where your business is going, how can you expect others to buy in as franchisees? The clearer the vision and the more specific it is, the better. If a franchisee isn’t sure what kind of restaurant you want them to open and run, they are not likely to succeed. You need to articulate your vision as clearly as possible so that everyone involved understands what it entails and can work toward achieving it.

You should also have a plan for achieving that vision—even if it’s just a rough sketch at first—and share it with everyone involved in the project (including potential franchise partners).

Keep The Lines Of Communication Open

You’ve probably heard the phrase, “it takes two to tango.” That is especially true in franchising, where the relationship between the franchisor and franchisee is essential to long-term success. A good relationship will help you achieve goals together and avoid conflicts, while a bad one can lead to problems that can hurt both parties.

Here are some ways to keep your franchisor/franchisee relationship strong:

• Make sure there are clear lines of communication between you and your franchisees so that nothing falls through the cracks. This means having phone numbers or emails for everyone involved in the process—the people who manage the systems set up by both sides as well as those who handle day-to-day operations for both sides—so that everyone knows how best to get in touch with each other when necessary (and it will be). It also means having a hotline number or email address explicitly designated for urgent issues between companies, so they don’t have to wait until regular business hours are over before addressing them (because sometimes things happen outside of standard work hours).

Be Consistent

It’s simple: you need to be consistent with the franchisees in your system. Not being consistent will lead to confusion, frustration, and miscommunication between franchisors and franchisees. Franchisee relationships are built on trust, so if you’re not being consistent in how you communicate as a franchisor with your franchisees, they will get confused about what’s required of them.

In contrast, when you’re consistent—for example, in how often you communicate with them—it builds trust because they know what to expect from you and when they can expect it.

Speak Their Language

What is your franchisee speaking? If you’re not sure, it’s time that you find out. Here are some things to consider:

• Are they using the same terminology? Does the word “franchise” mean anything to them? Or do they call it something else (like “system” or “brand”)?
• Do they use acronyms and abbreviations in their everyday language and conversation with their staff, customers, and vendors? How often do these words appear in their emails, presentations, or marketing materials?
• Are there buzzwords/slang unique to the industry/region of operation that could help improve communication between franchisors and franchisees when used correctly by both parties?

Looking At Issues From Both Sides

The best business relationships are built on mutual respect and understanding of each side’s unique situation. Therefore, seeking a win-win conclusion should always be the goal in the franchisor/franchisee relationship.

When negotiating or settling disagreements, Evan Goldman, a partner in the New Jersey based law firm Greenspoon Marder LLP, puts it this way: “Creating a better franchisor/franchisee relationship is all about empathy. From the pre-signing negotiations to the end of the relationship, putting yourself in the other side’s shoes makes a world of difference. As someone who regularly represents both franchisors and franchisees, it has made me acutely aware of how each side thinks, why they’re asking for a particular “thing,” and how we can resolve potential roadblocks. When you only see something from your own perspective, you will assume the worst of the other side. But if you look at it from their perspective, too, it’ll open your eyes to much more and create a robust and lasting relationship between franchisor and franchisee.”

Celebrate The Victories And Learn From The Defeats.

To have a successful franchisor/franchisee relationship, you must celebrate the wins and learn from the losses. Don’t let them get in the way of your relationship. Don’t hold grudges or harbor ill feelings for either side. If an issue arises, address it as soon as possible so you can move on with your lives and focus on what matters most: building a solid brand together!

Remember That You’re A Team

As you are a team, treat each other as such. For example, if one of your franchisees fails to meet the terms of their lease agreement, it isn’t just an issue for them; it’s an issue for your company. Similarly, if one of your franchisees gets sick and can’t make their scheduled meetings or pay a bill on time, that’s not just an inconvenience for them—it puts strain on your relationship. Flexibility makes a good franchisor/franchisee relationship so important: when both parties act like partners in something much more significant than themselves, they’re better able to solve problems together in a way that benefits everyone involved.

Lisa Oak, former Vice President of Subway and now Chief Development Officer with Biggby Coffee explains the relationship highlighting the “why” and the “purpose” of working together. She states: “Early in my career, I realized I love helping franchise owners build their versions of the American Dream. Back then, I did that by negotiating leases for their new Subway restaurants. At Biggby Coffee, our purpose is to help you build a life you love. Coffee franchising is the vehicle we use to do that. Nothing builds relationships like supporting each other in achieving personal goals. The “why” gets us out of bed in the morning, gets us through the hard stuff, and enables us to truly celebrate the wins together! It’s all about purpose!”

For this franchisor/franchisee partnership dynamic to work effectively, there must be equal communication and teamwork between both parties all along the way!

A Good Relationship Fosters A Successful Franchisor/Franchisee Partnership

No matter the size or type of your business, you are working with a franchisee to drive sales and profits. Both parties have a stake in this partnership. The franchisor is responsible for providing support and guidance, while the franchisee provides time, money, and labor toward achieving specific goals. This is why fostering a good relationship between both parties is crucial to ensuring alignment on their shared goals for the business.

A strong relationship between the franchisor and its franchisees isn’t just beneficial for them—it can also help improve brand loyalty within their community and increase profitability from new sales opportunities down the road!

Conclusion

In conclusion, we hope you’ve found this article helpful in your quest for a better franchisor/franchisee relationship. To recap, here are some key areas to focus on to create the best possible partnership:

• Setting clear goals.
• Keeping lines of communication open.
• Being consistent with everyone involved (including yourself).
• Talking in terms, they understand and appreciate each other’s contributions.

Hopefully, these tips will help you succeed as a franchisor by creating a team-player environment!