Franchise Relations – Building A Solid Foundation

Open communication is the fundamental factor between the franchisor and its franchisees that contributes towards building and encouraging positive franchise relations. As a franchisor there must be a solid foundation that franchise relations can rest upon.

The following should result in positive franchise relations:

Are You Aware?

Be involved and aware that new franchisees have and continue to receive what they were told and expected to receive. If necessary, take appropriate action to prevent a reoccurrence. It’s better to uncover a problem in its early stages before it becomes a major issue.

Are You Consistent?

The franchise agreement should be a non-negotiable document preventing franchisees from having agreements with varying terms. This becomes more relevant as the franchise network grows as it becomes more difficult to recall which terms were negotiated in which agreement.

Are You Living Up To Your Promise?

The franchisor is obligated to provide ongoing services that your franchisees are entitled to receive. Be sure that your staff is delivering what you promised and that your responsibilities as a franchisor are being fulfilled. Conduct regular surveys to evaluate the level of franchisor satisfaction on the part of your franchisees.

Are You Maintaining Compliance?

Uphold the standards that your franchise agreement establishes. Franchisees must be held accountable to these standards to prevent potential problems. By not enforcing system standards, a franchisor is being unfair to those franchisees that follow the system.

Are You Monitoring?

Measure the financial results of your franchisees on a regular basis as profitable franchisees will typically lead to positive franchise relations.

Are You Adapting?

Change should initiate when needed rather than being forced into it by your franchisees. When franchisees demand change it can cost the franchisor important credibility and hurt its relationship with franchisees.

Are You Tuned In?

Do you have a network of franchisees that can be counted on to provide feedback when needed?  Use this relationship in a positive way as it is a benefit which can work both ways.

No system is perfect but by addressing the above, you’ll have a structure within your organisation which will be able to withstand those franchisor-franchisee relations challenges that can arise from time-to-time.

kevKevin Antonie

CEO

SA Franchise Brands

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