IMPORTANCE OF STRONG RELATIONSHIP BETWEEN FRANCHISOR AND FRANCHISEE
An effective and strong relationship between franchisor and franchisee is one of the keys to a successful franchise business. There is so much in the franchise, more than what we think.
In short, both of you are partners that should give full effort to your business life. As a franchisee, you are responsible to stick to the rules and regulations set out in the franchise agreement in order to use your franchisor’s business system. It is a win-win situation, your franchisor will also benefit from their franchise in expanding their brand recognition, product/service endorsement, and revenues. It can gain also their popularity by introducing its brand in the market and industry.
- Signing the franchise agreement.
A franchise contract/agreement is the legal document that indicates all the standards and requirements of franchises in their business partnership. This is also proof that a franchise is legal to establish, use the brand, and take advantage of the business system. Once you sign this contract, you are obligated to follow and fulfill your responsibilities, including the payment of royalty and advertisement fees.
So before signing the franchise agreement, make sure you carefully understand all the details written to avoid conflicts and dissension with your franchisor. You should also search the franchisor’s profile and background to ensure that you are in good hands.
- Getting a companion in running the business.
The relationship of the franchisor to the franchisee is usually compared between parent and child. As a franchisor, they should be accountable and look after its franchisee. They are responsible for helping their franchisee operate their business. Like a parent, they are giving advice and support like training, seminars, and workshops.
In time, the franchisee will become independent and can stand on its own. However, they still needed to communicate and be open with their franchisor. They can schedule weekly or monthly meetings with their franchisor to maintain the good relationship they build.
- Communication is the key.
Nowadays, communication is getting easier through calls and emails. However, most successful franchises usually love to have a face-to-face meeting and discussion on building a good business relationship. In this way, they can also acknowledge your presence.
A successful relationship is built by trust, open discussions, and honest opinions. If there is an issue between the franchisor and franchisee, it could lead to poor relationships and can affect business performance. Both parties should know how to listen to concerns, opinions, and suggestions. Franchises are responsible to pay attention to the franchisor’s business idea, system, and perspective. In return, the franchisor should give the franchises the opportunity to speak out and tell their issues and able to resolve it.
- There’s always a helping hand.
Well, it’s the purpose of franchising! That’s why there are many entrepreneurs who love to invest in a franchise business because of the full support and the support they give. Once you become a franchisee, expect the franchisor’s assistance through the way. You can also seek advice and suggestions in business matters.
If a franchisor and franchisee have a strong relationship, there’s always a helping hand in times of challenges. Success is easy to achieve when there’s a balanced and productive relationship.