The world of franchising is an attractive business opportunity to follow since it offers a proven system along with tangible results. Even though it might look like it is just as easy as adding yourself to the system and enjoying the results but there is much more than that to a franchise-franchisor relationship. Despite so much foundational work being done by the franchisor, there is a lot of hard work involved. The franchisor protects its brand and the franchisees protect their investments. Below are 5 ways to build a strong franchisor-franchisee relationship that can take your association to greater heights.
- Doing your Research
Both the franchisor and franchisee have to do their part of the research. The franchisor has to scrutinize personal and financial background of the franchisee. They evaluate the potential of each candidate for success in their system. The franchisees should also do their part of the research. They should research online as well as the company’s website to find out more about them. They may talk to the existing franchisee to know their perspective. Understand the investment that will be required and carefully review all the material provided by the franchisor. The franchise agreement and franchise disclosure document are two most important documents that the prospective franchise owners will receive once they progress towards becoming franchisees. A thorough research gives a complete understanding of the franchisor which is paramount.
- Clear Communication
Clear communication and trust are really important for success when it comes to the franchisee/ franchisor relationship. The best practices and ideas should be shared and the feedback of franchisee should also be taken. Communication can take place via newsletters, meetings, conventions, webinars etc. Franchisees work on the tools, products, and systems. They can provide feedback about what is working and what is not. There are times when most successful products or campaigns originate within the network of franchisees. Therefore, clear communication should be maintained.
- Following the Plan
The systems and procedures are crafted by the franchisor for a reason. The franchisor has already developed certain procedures which have been implemented and tested over time. The company defines its standards which are to be adhered to by the franchisors. Franchisees have to follow the rules which are laid down by the franchisor in order to run the business successfully. They are given all the support which is needed for the successful execution of the business model. Deviation from the plan might lead to chaos and might also hamper the brand image. Adhering to the plan is in the best interest of both the franchisor and the franchisee.
- Acting Responsibly
A franchise relationship is successful when both the franchisor as well as the franchisee live up to their responsibilities. The franchisor is obliged to provide franchisees with materials, necessary systems and training to succeed. They need to keep on changing their business strategies along with time and understand that what works today need not work tomorrow. They need to conduct regular site visits to ensure that the standards are being met. When it comes to the franchisee, they have to follow the operational standards and have to augment the advertising of the franchisor by local marketing. They also have to report the sales to their franchisor. They have to maintain the quality standards and participate in the campaigns by honoring product services and discounts. If both the franchisor and franchisee do justice to their responsibilities then it ensures smooth functioning of the franchise association.
- Having the Right Tools
Franchisees buy the business model of the franchisor and they need the right tools to replicate their success. Tools involve things like an initial training program, operating systems, and access to the supplier network. It also involves equipment, training manuals and also the access to advertising and marketing programs and materials. Having the right tools help the franchisees in understanding and expanding their business.
Thus, for the success of the franchisor’s business, it is imperative that the franchisor and franchisee develop a strong relationship. This can be achieved by following the 5 keys which include doing your research and maintaining clear communication. It also involves following the business model, acting responsibly and having the right tools to succeed. With these key tools, one is sure to have a successful franchisee-franchisor association.