A successful franchisor-franchisee relationship is built on trust that comes from honest, two-way communication. It’s like a business version of a marriage – an interdependent relationship that requires mutual respect and effort from both parties.
Transparency is critical if the special relationship between franchisor and franchisee is to work, which means good communication skills as well as business sense are needed. A franchisor can give advice and guidance, but it’s the franchisee who is ultimately responsible for making decisions and carrying them out, to the success or harm of their franchise.
Drawing on his own experience, Chris Wootton, Managing Director and franchisee of Poppies shares his advice on how to achieve a successful relationship between franchisor and franchisee and the benefits it will bring to a franchise network.
Open communication and trust
Both franchisor and franchisee have a responsibility to be open and truthful with each other. The relationship is about providing clear lines of communication, sharing best practices and ideas. Regular meetings and opportunities for feedback will help franchisees to feel valued and to prevent serious issues from developing between the franchisor and the franchisee.
The franchisor needs to ensure that the franchisee knows exactly what’s expected of them at every stage during the relationship and to also provide the franchisee with the support, training and materials they need to succeed.
Franchisors rely on franchisees to represent their brand to the best of their ability, to follow their guidelines, and to help the brand to grow. Franchisees rely on franchisors to provide them with training and support and the tools to get their business started. If both parties are committed to being honest and trustworthy, a strong relationship will be developed.
“It is our role as franchisor to communicate any changes or improvements that will be implemented across the Poppies network, whether that be updates to the operations system, a new digital marketing campaign or group buying terms for cleaning equipment or products. In turn, our franchisees are the ones who are interacting with customers on a daily basis. They are working with the tools and systems so they are in a position to provide accurate feedback about what is working well or not and offer suggestions for improvement or new innovative services. Our relationship is a two-way street.”
Following the path to success
“Having been in franchising for 25 years, one of the most common things that surprises franchisors is when they find out something about a franchisee that they ought to have known and vice versa. There are some simple reasons, such as the right questions may not have been initially asked, but more often than not, prospective franchisees will tell a franchisor what they think the franchisor wants to hear.”
There is a special relationship between a franchisee and their franchisor and the two are closely interlinked. If a franchisee is successful, then so is the franchisor. It’s a simple relationship based on honesty and trust but realised through hard work and willpower. Often likened to a marriage.
“Being both a franchisor and franchisee has bought a different perspective to running my franchise of 25 years and four years as the franchisor. Sadly, our franchisor fell ill in 2011 and, during her battle with cancer, I supported her and the rest of the network for seven years by voluntarily taking on the responsibility of franchisor. Our relationship was based on friendship, loyalty and trust so when the opportunity arose for me to buy the franchise in 2018, I felt confident and well equipped to continue promoting the brand’s rich heritage and 40+ years of experience in the cleaning sector.”
Taking responsibility
Most of the responsibility for creating a strong relationship lies with the franchisor, however franchisees also need to ensure they give enough time and energy to the business if they want to feel valued, trusted and looked after by the brand.
Franchisors have a responsibility to ensure they tell their franchisees about the positive and negative side of the franchise. If there are known challenges that need to be fixed, the franchisor should be open and make them clear from the outset. Honesty is undoubtedly the best policy.
“The franchisor franchisee relationship is a unique and complex one and will only work well if both parties are invested. Having a strong brand identity and consistent business strategies will lay the foundations for success, while good leadership and effective communication will ensure that both parties are engaged. If both the franchisor and the franchisee work to achieve these factors, a balanced and productive relationship will make success easier to achieve.”
