Considering the Importance of the Franchisee-Franchisor Relationship

Franchising has many definitions but broadly is a distribution model, where people sign licenses to use the parent company’s brand, products/service, systems and operations within a defined area. The license and legalities of such an agreement are defined further through disclosure documents and franchise agreements that will list the obligations set out for all parties during the term of the agreement.

What a disclosure document and franchise agreement doesn’t highlight is the complex nature that can be a Franchisee-Franchisor relationship. Legal documents are usually black and white. Franchise relationships you’ll find are more like a rainbow. A colourful spectrum of tones that mirror the feelings and emotions of both parties involved.

Something incoming franchisees fail to consider is whether they feel they can work with the Franchisor for the duration of the agreement and beyond. It’s common to consider first and foremost if the franchise opportunity is a good fit for you. Does the service you will be selling and providing align with your needs and wants? Does the financial data suggest you will be satisfied with the earning potential of the business?

 

It’s important to point out that the best franchise networks not only have a great product and systems in place, but a great support network and head office staff to help when the road to success has diversions.

 

When you are researching these aspects of the business it’s easy to forget whether the franchise business is right for you in other areas. Will the franchisor be ready to support when things get difficult? What do other franchisees say when talking about the franchisor? It’s important to get a good feel for whom it is you are getting into bed with. And that is exactly what franchising is; sharing a business bed with someone else for the duration of the term.

It’s important to point out that the best franchise networks not only have a great product and systems in place, but a great support network. Head office staff should be available to help when the road to success has diversions. It’s very difficult to ascertain exactly what a franchisor will be like throughout the duration of the franchise term. However, understanding that your success as a franchisee largely depends not only on the product or service, but also the relationship you build with the franchisor. You will find there is a direct correlation between strong franchisee-franchisor relationships and healthy thriving businesses with profitable bottom lines.

 

 

 

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