Franchising can be the best way to grow your business. It all starts with having the right mindset and being prepared for what this journey will bring you.
But opening up your business to franchising will also open up a myriad of challenges. Several factors must be taken into account before embarking on this new adventure. As a business owner and now a franchisor, you will be dealing with more people. Some franchisors even speak personally to their prospective franchisees.
The strength of your relationship with your franchisees is essential to the success of the business.
How can you nurture your franchisor relationship with your franchisees?
In a relationship, you need clear and open communication and mutual trust. This means that the franchisor and the franchisee must be able to exchange ideas for future innovations. Although franchisors limit what franchisees can do, franchisors should also listen to any suggestions that might improve the business.
The role of the franchisor does not end once the franchisees have signed the franchise agreement. This is just the beginning of building the relationship. Feedback from franchisees is equally important in determining whether the system put in place by the franchisor still applies to the existing market.
There are several ways to keep in touch with franchisees: online, through newsletters and meetings, all of which are essential to facilitate better communication between franchisor and franchisee.
Franchisors are expected to provide training and support to franchisees. The franchise business model requires a system, policies, and principles that franchisees must follow. These should be clear from the outset in the franchise agreement. Before signing, franchisees should discuss with the franchisor what is written in the contract. Clauses that may seem vague should be discussed thoroughly.
Likewise, franchisors must organize training for franchisees and their employees on how the business operates. The franchisee must know what corresponds to the operation of the franchised business.
People do their best when their efforts are recognized. This also applies to franchisors – they should recognize the exemplary performance of a particular franchisee.
People who feel recognized and valued help build a positive sense of self-esteem. In return, the person will aim to work more efficiently. It’s not just about high incomes. Having a positive attitude towards work attracts more people to the company, which leads more people to trust the brand.
Franchisors must continuously monitor the progress of each franchisee. An occasional visit to each store will allow the franchisor to determine if each franchisee is doing well, if things are not being tracked under the agreement, and if there is a need to change the operation of the franchise business. Remember that as times change, the business must adapt to market needs without changing the franchise culture.
Consistency and commitment are necessary for the franchisor and franchisees to succeed. The franchise agreement should guide how the flow of business should be tracked and how the business should operate. Any lapses committed by the franchisor or the franchisee could cause the relationship to collapse. This brings us back to number one, which is to build mutual trust.
Don’t listen to hearsay. As in any relationship, it can ruin the business. Avoid jumping to conclusions if you ever hear something negative supposedly coming from someone. It’s best to talk to each other directly to clear the air and strengthen the business relationship. Franchisors should not be quick to judge. Investigate before confronting a franchisee to find out the truth behind an incident that needs your attention.
Disagreements between franchisors and franchisees can be avoided if they have the same vision of the business. This is why franchisors should not be in a hurry to choose a franchisee. The characteristics of a franchisee are equally important in expanding the business.
Work ethic is important among franchisees. It affects how they handle their responsibilities and take their jobs seriously. The main reason an entrepreneur opens their business as a franchise is to grow. Choosing the wrong franchisee can waste time, effort and resources.
The franchisor-franchisee relationship is strengthened when everyone takes their responsibilities seriously. Remember that the franchisor is only half of the business and the performance of each franchisee will determine the success of the brand.
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For more information you can contact Armando “Butz” Bartolome
by email: [email protected]
FB Page: Butz Bartolome
LinkedIn: https://www.linkedin.com/in/franguru/
Website: https://www.butzbartolome.com
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