What You Should Know about the Franchisor-Franchisee Relationship

Developing an effective franchisor-franchisee relationship entails a lot of work and commitment. The best way to go is to partner with credible franchisors with a tested and proven franchise business model.

What You Should Know about the Franchisor-Franchisee Relationship
What You Should Know about the Franchisor-Franchisee Relationship
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The franchisor-franchisee relationship is a symbiotic relationship where both parties can benefit without causing each other any harm. However, as any business relationship, it is important to lay down expectations early on.  It is a must to draw the line where the relationship starts and where it should end. Read on and get to know more about the franchisor-franchisee relationship.

Things to Know about the franchisor-franchisee relationship

A franchisor-franchisee relationship requires an equal share of commitment

The International Franchise Association  states that while the franchisor has a commitment to 3 things: the brand, the system and the support to the system; the franchisee has his share of commitment to the business model too.

Let us not confuse a franchisor-franchisee relationship to that of marriage. This is because, while marriage involves equal rights and privileges to both parties, a franchisor-franchisee relationship does not necessarily have the same duties, obligations, rights and privileges.  Both parties should give the same level of commitment for the success of the business; yet remember that they do not have the same roles to play. AllBusiness.com says a franchisor-franchisee relationship requires an ongoing commitment.  Each one is expected to uphold its end of the bargain through active communication, common goals, and mutual respect. The Franchise Maker, on the other hand, stresses that if the franchisor is not committed to allocating sufficient resources to market and effectively screen potential franchise applicants, then he should not get into franchising your business. Franchise.org even suggests that the franchisor can help and raise the commitment level of the franchisee.

A franchisor-franchisee relationship will be effective if expectations are set

The Franchising Association of India suggests that in order for such a relationship to be created and nurtured, it is important for both parties—the franchisor and the franchisee – to clearly understand and appreciate the goals and expectations of the other party in the relationship. One of the fundamentals posted by Franchising World to franchisor-franchisee relationship success is defining expectations clearly. As such, it is a must to read your brand manual and be familiar with your franchise agreement.

A franchisor-franchisee relationship needs an effective communication process

A franchisor-franchisee relationship needs an effective communication process
A franchisor-franchisee relationship needs an effective communication process
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Just like any other business relationship, a franchisor-franchisee relationship can keep expectations and roles clearly defined through an effective communication process. According to an Entrepreneur.com article, effective communication is key! It means more frequent visits and meet ups on a regular basis. The same article warns us that it is not enough to rely on emails and technology centered-communication. This is because emails or text messages can be taken out of context. You need to establish dialogue to enhance the franchisor-franchisee relationship. Furthermore, regular dialogue and communication sessions will enhance a good feedback system. This will not only enhance the relationship between parties but will also facilitate brand development.

A franchisor-franchisee relationship should honor the franchise agreement

The franchise agreement will be the franchisor and franchisee’s guide in performing their duties and responsibilities. If both parties abide and honor what the agreement says, this will maintain a healthy franchisor-franchisee relationship. In effect, when problems arise, they can resolve issues with the help of the franchise agreement too.

A franchisor-franchisee relationship can determine business success

It is a fact that a healthy franchisor-franchisee relationship can bring a brand to success. With a good business franchise model and all parties working towards a common goal — a sure recipe for success! Franchise.org states that the franchisor and the franchisee together play a role in the success of the overall franchise company.

Conclusion

The franchisor-franchisee relationship is a critical aspect of the success of the business franchise model. It is important that both parties understand their roles and limitations. It is a continuous process to keep this business relationship effective. It requires effort on the franchisor and the franchisee as well.

Yes, franchising does work. Developing an effective franchisor-franchisee relationship entails a lot of work and commitment. The best way to go is to partner with credible franchisors with a tested and proven franchise business model. DetailXperts will open doors to your business franchise dream. Check out the franchise opportunity with one of the best auto detailers in the market today.

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