Franchisor franchisee relationship

Franchisor franchisee relationship

Franchisor and Franchisee Relationship is like a marriage. We’ve often heard there is a selection of a bride (choosing a franchisee), a honeymoon period, an adjustment and settling down period and then in certain cases, a divorce…where a split is imminent. We would say that franchising is not a partnership and, in that sense, not a marriage. It is more a parent-child relationship. The earlier a franchisor and a franchisee understand this, the better it is for the system.

From the onset it is important to set your franchising relationship definition to that effect and both parties work towards ensuring that there is an organic growth in the business whilst the infant, (The New Franchisee), needs proper care, is handheld, and ensures that they are completely supported while they are crawling and walking with the franchisors finger. Then the franchisee is given more autonomy, whilst some kids behave nicely, there are some who would flaunt the home rules.

When the relationship matures, there is less saying and more understanding. This is the stage when there is an optimum contribution from both the ends and the franchisee is doing what they are best and doing and the franchisor what they are best at doing. Having said this it is very important that the franchisor understands the difference between working with company-owned stores and franchisees. There has to be a two-way relationship based on continuous dialogue, honesty, and trust rather than a Franchisor Vs Franchisee relationship.

At Sparkleminds we ensure that the Franchisor franchisee relationship imbibe a strong focus on the following

  • Clear vision and Objectives are shared.
  • There is absolute professionalism at both ends
  • Focus on strong support functionalities
  • Clear and Proper communications at all times, with a focus to listen.
  • Advertisement and Marketing Systems
  • Fantastic Training Programmes
  • Clear growth and development plans for franchisees.
  • Treating franchisees like V.I.P’s, as they are very important.
  • Ensure that every help is given for franchisees to be profitable.
  • Having standardized policies with no impartiality.

A Franchisor and Franchisee Relationship is governed by the Franchise agreement. It is the document which ensures there is clear cut lines of roles and responsibilities for both the parties. The agreement defines Franchise Relationship Laws that creates a franchisor-franchisee model for smooth functioning of the franchise.

The next thing then is to understand what motivates and keeps the franchisor-franchisee relationship going. Our studies link this to the most common requirements of what humans essential seek and that is:

Money:

In other words, nothing motivates like what money does. Profitability is why the franchisees and franchisors work together and when both of them can achieve these goals, they are a very happy lot.

Franchisor franchisee relationship Control:

All franchisors and franchisees crave power. They want to control their businesses and their day-to-day activities and lives and when this power is given to them aptly, they love what they can do and hence ensure that they contribute to the system. Hence, there has to be a positive Franchise Relationship with Franchisor and franchisee.

Self Respect or Esteem:

One of the most critical factors for a successful franchise relationship is to clearly understand the prestige of the franchisee and franchisor and to ensure that both ends are respected.

Enjoyment:

Everybody wants to enjoy what they are doing and it is up to the franchisor to ensure that they create a framework within which franchisees enjoy what they are doing and then go a step further to choose only those franchisees who would enjoy doing the business. Most times, the franchisor also ensures that the franchisees get together for annual meets at the recreational location, with families at times, to have fun while contributing to the business. Pleasure is a very strong factor affecting the franchise relationship.

Franchisor Franchisee Relationship Recognition:

There are people who take up a few franchisees only because of the recognition that they get. All franchisees within the system crave prominence and want to be awarded and publicly appreciated for what they have done. Hence, a proper recognition, award, reward and appreciation mechanism works greatly in favour of strengthening a franchise system.

At sparkleminds, we lay great emphasis on building a strong franchisor-franchisee relationship system, at whatever stage of franchising you are on, and ensure that you work towards the long-term goals of establishing a strong successful franchise business.