What makes a Good Franchisor-Franchisee Relationship
A good or effective Franchisor-Franchisee relationship is one where the parties achieve the desired results in a harmonious manner. In order for such a relationship to be created and nurtured, it is important that both parties, the Franchisor and Franchisee, understand and appreciate the goals and expectations of the other party in the relationship. Let’s take a look at the expectations in a healthy relationship between a Franchisor and a Franchisee.
Franchisor Goals and Expectations
- The Franchisor expects the Franchisee to follow the plan laid out for the franchisee to run the business and achieve success. The Franchisor believes that he has already established the business and now he wants others to follow him.
- During the launch of the business, the Franchisor expects the Franchisee to learn the business and follow the plan outlined. The Franchisor does not want a Franchisee to offer suggestions for ‘improvement’ no matter how well intentioned they may be.
- During the last phase, when the Franchisee fully appreciates the inter-dependent nature of the relationship and has achieved success with their own business, the Franchisor hopes and expects that the Franchisee will ‘pay forward’ by mentoring other franchisees.
Franchisee Goals and Expectations
- While the franchisee is extremely eager to learn, they want the Franchisor to at least listen to their expectations and prior experience.
- The Franchisee expects the Franchisor to guide them and help with initial trainings, recruitment etc.
- The Franchisee expects that at the launch stage of the business everything will go smoothly and business will come at least at the pace of an average unit if not higher.
- Franchisee considers the franchisor to be the expert and as such expects that the franchisor will guide them and help them to achieve success.