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The Franchisor/ Franchisee Relationship

Franchise Relationships:

How many of you think franchising is like a marriage. We’ve often heard there is selection of a bride (choosing a franchisee), a honeymoon period, an adjustment and settling down period and then in certain cases, a divorce…where a split is unavoidable.

We would say that franchising is not a partnership and in that sense is ‘not a marriage’. It is more a parent child relationship. The earlier a franchisor and a franchisee understand this, the better it is for the system. From the onset it is important to have your relationship defined to that effect and both parties work towards ensuring that there is a organic growth in the business whilst the infant, (The New Franchisee), needs proper care, is hand held and ensures that they are completely supported while they are crawling and walking with the franchisors finger.

 

Then the franchisee is given more autonomy, whilst some kids behave nicely; there are some who would flaunt the home rules. When the relationship matures, there is less saying and more understanding. This is the stage when there is optimum contribution from both the ends and the franchisees are doing what they are best at doing and the franchisor what they are best at. Having said this, it is very important that the franchisor understands the difference in working with company owned stores and franchisee. There has to be a two way relationship based on continuous dialogue, honesty and trust.

At sparkleminds we ensure that the franchisors imbibe a strong focus on the following whilst we go about their franchising:

  1. Clear vision and Objectives are shared.
  2. There is absolute professionalism at both ends
  3. Focus on strong support functionalities
  4. Clear and Proper communications at all times, with a focus to listen.
  5. Advertisement and Marketing Systems
  6. Adequate Training Programmes
  7. Clear growth and development plans for franchisees.
  8. Treating franchisees like V.I.P’s, as they are very important.
  9. Ensure that every help is given for franchisees to be profitable.
  10. Having standardised policies with no impartiality.

The next thing then is to understand what motivates and keeps the franchisor franchisee relationship going. Our experience with so many franchisors and franchisees link this to the most common requirements of what humans essential seek and that being:

Money: In other words nothing motivates like what money does. Profitability is why the franchisees and franchisors work together and when both of them can achieve these goals, they are a very happy lot. More often than not, relationships whose monetary benefits are not clearly defined and then met begin to erode and hurt.

Control: All franchisors and franchisees crave for power. They want to control their businesses and their day-to-day activities and lives and when they start enjoying these powers aptly, they love what they can do and hence ensure that they contribute to the system. It is so necessary to ensure that this power is not what they have over the other, but what they enable for each other.

Self Respect or Esteem: One of the most critical factors for a successful franchise relationship is to clearly understand the prestige of the franchisee and franchisor and to ensure that both ends are respected.

Enjoyment: Everybody wants to enjoy what they are doing and its upto the franchisor to ensure that they create a framework within which franchisees enjoy what they are doing and then go a step further to choose only those franchisees who would enjoy doing the business. Most times, the franchisor also ensures that the franchisees get together for annual meets at recreational location, with families at times, to have fun while contributing to the business. Pleasure is a very strong factor affecting the franchise relationship.

Recognition: There are people who take up a few franchisees only because of the recognition that they get. All franchisees within the system crave for prominence and want to be awarded and publicly appreciated for what they have done. Hence a proper recognition, award, reward and appreciation mechanism works greatly in favour of strengthening a franchise system.

Hence, at sparkleminds, we lay great emphasis on building a strong franchisor franchisee relationship system, at whatever stage of franchising, you are on and ensure that you work toward the long-term goals of establishing a strong successful franchise business.
Speak to our senior consultants to understand how we can help you with this.

 
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