Cultivating a Good Franchisee/ Franchisee Relationship

Maintain the relationship between franchisee & franchisor. One of the ways in which to maintain or cultivate a healthy franchisee/franchisor relationship is to maintain good communication. Many problems between franchisees and franchisors could have been prevented if informal communication had existed before matters became legal problems. One thing a franchisor can do is to make sure that new and existing franchisees know the organizational charts of the franchise so that a franchisee knows who to contact for a specific problem. Some advanced planning of what to do in a particular crisis can also help so that a franchisee does not sit on a problem before coming to the franchisor early.

Maintaining The Franchise Brand

Since the franchise brand is often reflected in how the franchisee operates the franchise, in addition to good people skills, the franchisor should consider how hard the franchisee is willing to work to make the franchise a success. Good training may compensate for certain business inexperience, but the desire to work hard especially during tough economic times can help give a franchisor comfort that the franchise will remain stable or continue to grow. Along the same lines, a goal-oriented franchisee can help the franchise as a whole move forward. Needs and times change and forward-looking franchisees help a franchise stay relevant.

Selecting Your Franchisee

We have posted a lot of information about how franchisees can select a good franchise, but for the overall health of a franchise, the franchisor should give consideration with respect to its selection of franchisees. Some franchisors may stop at whether the franchisee has sufficient funds and interest in the franchise, but many franchises depend on the relationship of the franchisor and franchisee and the underlying communication. So, while assets and business experience may be important for a specific franchise, the social abilities of the franchisee may also be important. Underlying most business is great customer service. Franchisees have to deal with customers, franchisor vendors as well as employees of the franchise. A healthy franchise system depends on a healthy franchise and how the franchisee interacts with the various people that make up the business is important.