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The Ideal
Franchisor / Franchisee Relationship
In an ideal world, the relationship between a franchisor and a franchisee should be open, honest, fair, friendly, and professional. Of course, this isn’t an ideal world, and you may find yourself in disputes with your franchisee. The best way to avoid these is to stop them in their tracks before they happen, and the best way to do that is by being a picture-perfect franchisor!
Characteristics of a Good Leader
At all times, a franchisor is a leader. Whether you have one franchise or seventy, you are the one in charge of helping your franchisees along, directing them, and guiding them. They will look to you for support and encouragement. With that in mind, there are several characteristics you should aim to embody.
· Have a clear vision of what your franchise should look like.
Ambiguous statements, unclear directions, and constantly shifting instructions are frustrating to both parties.
· Be flexible.
Your ideas are great, but your franchisee might have valuable suggestions, too. In addition, you can never be sure when the market might change, your clientele might deviate, or specific locations may experience certain events. Have a clear vision, but be willing to work within that vision.
· Be a mediator.
It’s your job to handle any disputes that can’t be handled at a local level: territory disputes, employment difficulties, arguments between franchisees, etc. You are also responsible for managing disputes between franchisees and yourself!
· Be sensitive.
You have to be aware of what’s going on in your franchise. It’s your job to anticipate problems and catch them before they blow up, and it’s your job to do that with sensitivity and respect. Again, the key here is going to be open communication between you and your franchisees!
· Never stop planning.
Your job doesn’t stop with the franchise opening! Make sure you’re constantly thinking in terms of market research, sales strategies, training seminars, and anything else you can come up with to help your franchisees be as successful as possible!
What To Expect from Franchisees
A relationship is a two-way street, and it can’t be up to you to maintain good communication and the like entirely on your own. Make sure your franchisees are aware of your expectations from the get-go: that way, there’s no room for confusion. You may even want to spell them out in the franchise agreements or the operations manual!
· Immediate notification of any problems or concerns.
If something happens that you should be aware of, it is the franchisee’s responsibility to see to it you are informed as quickly as possible. Similarly, it’s the franchisee’s responsibility to let you know if he’s unclear or confused about training, operating procedures, or anything else related to the running of the franchise.
· Responsibility in running the franchise.
Although you’ll be involved in the franchise, it isn’t your business. The franchisee is ultimately responsible for the franchise’s success and failure. Building any business, even a franchise, requires hard work and long hours, and the franchisee mustn’t expect overnight success.
· Prompt and accurate payments.
The terms of payment are spelled out in the franchise agreement, and it’s up to the franchisee to abide by them. An occasional mistake or bout of forgetfulness is forgivable, but generally speaking, the franchisee is responsible for the financial end of their own business, and that includes making payments on time.
· Compliance with the franchise agreement, operations manual, and any training you choose to offer.
You’ve put a lot of work into your business plan, marketing research, and operations manual. If the franchisee wanted to run things 100% his way, he would have started his own business; part of the appeal of a franchise is that the system is already established and proven. Given that, the franchisee has the responsibility to work within that system.
How It Shouldn’t Look
There are a few things that shouldn’t happen in a franchisor-franchisee relationship, and it’s best to be on the lookout for those, too.
· Unprofessionalism. For example, you shouldn’t be gossiping about one franchisee to another, or allowing them to do the same to you.
· You running the business. This can happen on both ends: the franchisee may want your constant input and supervision, or you may be reluctant to relinquish control of your business. You must remember that, while the brand and product are yours, the franchise is the franchisees. You will offer assistance, but its success and failure are ultimately up to the franchisee.
· Your total withdrawal. You do have some responsibility to the franchisee, and that means you have to be available to offer assistance when events warrant.
How
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