According to many entrepreneurs, franchising is a great way of becoming a successful business owner. With its business fundamentals and a solid reputation already in place, the franchise model is ideal for any entrepreneur who values a business concept that is solidified with additional support from the franchisor and their team of experts.
Unfortunately, no business is truly immune to the challenges the world throws at them. Inflation will inevitably increase, new legislation will have some kind of impact and procedural changes can often disrupt a business’ rhythm. Although, since a franchisee has bought into an established brand with a solid support structure, there are measures in place that can assist in keeping the business on the right track.
Managing Executive of The Fish & Chip Co, Marcel Strauss, adds however, that many franchisees often tend to forget that support extends both ways. The relationship between the franchisee and franchisor simply cannot function optimally if there is not mutual cooperation between the two.
“The franchisor can supply as much support as possible, but if the business owner does not utilise what is shared and reciprocate through operational support, the store will not flourish. Essentially both the franchisor and franchisee are putting in the time, money and effort to create a legacy which both will share in, and it is, therefore, important that both partners contribute and cooperate continuously.”
The franchisee needs to remember that once they have signed the franchise agreement, they are not just only committing themselves, their time and their money to a store. By signing up, they are agreeing to form part of a franchise team that is governed by rules and regulations – for a reason.
“The contract that is entered into by both parties can be likened to a marriage contract. Even though we remain separate entities in person, on paper, we are joined together as one. As in any relationship, if one party is not fully committed and does not provide their unwavering support and buy-in, the relationship, and ultimately the agreement, will deteriorate.”
The partnership between the franchisee and franchisor needs to be strong enough to weather any storm. Strauss adds that in the relationship, franchisors also need to be mindful of the fact that a large investment was made by the franchisees in their brand. In return, franchisees need to remember that franchisors do have their best interests at heart as their own business and overall reputation is at stake. In the same instance, franchisees further need to bear in mind that the franchisor will not be able to make drastic decisions and changes to suit their individual needs, as any decisions, no matter how insignificant, will impact the entire group.
“The franchisor is in a position of leadership for a reason, and it is with this responsibility that they have a duty to ensure that the entire group works together as a cohesive unit. If there is no unity and understanding, there will be no harmony, which will ultimately affect brand productivity and success. It is, therefore vital that both the franchisee and franchisor always work together, for the greater good of their business. This is the ultimate recipe to success,” Strauss concludes.
Opinion piece shared by PR Worx.