Cultivating a thriving franchise relationship

The opportunity to own a business and reaping the benefits of joining a larger company, as well operating within the framework of a tried and tested franchise system is very appealing for potential franchisees.

An attractive medium between a franchisee’s personal goals and a franchise’s business goals can sometimes be hard to strike.

It is true that the franchise relationship, more often than not, is skewed in favour of the franchisor. It is the franchisor who holds more sway, or more power, in this partnership.

That is not to say that being a franchisor is a walk in the park. Franchisors need to establish a business, develop it to the extent that it actually justifies a franchise and then scout for franchisees.

Franchisors also must find a balance between consistency and integrity across the franchise network, as well as allowing the franchisee to work with as much independence as possible.

Of course, the franchisor and franchisee do not have an equal amount of control in a franchise. However, they are equally important.

There are two stages that must be observed to make sure the franchise partnership is a successful one:

1. Set up boundaries

The two parties, franchisor and franchisee, should acknowledge their differences and what they both need to bring to the table. Boundaries need to set up from day one to curb potential conflict one day down the track.

Like all relationships, the franchise will grow, mature and change as time goes by. Eventually, as franchisees become more and more independent, they will require further autonomy and the franchisor needs to make provisions to accommodate this.

With boundaries firmly set up, the changes can be harnessed to bring as much positive growth to the benefit of the franchise and both parties concerned. When handled properly, franchisees can play an important part in the growth of the franchise through keeping the lines of communication open and free between themselves and the franchisor.

2. Communication

A relationship cannot exist without communication. When two people privy to a partnership keep the lines of communication open, free-flowing ideas and suggestions can travel both ways, allowing both the participants and the relationship itself to grow and mature in a positive manner.

Franchisors need to allow for communication to travel in both directions, not just from the top down. A meeting in person is the best form of communicating. However, for a multitude of reasons, this sometimes may be problematic, so various forms of communication need to be available and readily accessible.

Communication between franchisor and franchisee, while still friendly, should always remain professional. Franchisees need to be given instructions clearly and precisely, and suggestions and feedback should be presented in a clear and non-emotional manner.

At the end of the day, the two parties are both striving to the utmost success of the business and should work as a team to benefit the franchise.

Read on about buying a franchise and running a franchise.

The Franchise Council of Australia is a not for profit membership organisation that is the peak body representing the franchising sector in Australia.