
Tips and Tricks to Maintain a Healthy Franchisee-Franchisor Relationship
The relationship between Franchisee-Franchisor is a sensitive balance between mutual respect and collaboration
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CIO Applications Europe | Monday, September 28, 2020

The relationship between Franchisee-Franchisor is a sensitive balance between mutual respect and collaboration.
FREMONT, CA: The franchisee-franchisor relationship is unique in the working world. It's not that of an employee and employer, where the employer is considered to be 'the boss.' In a franchise relationship, the franchisee is effectively his own boss. However, it's not 'equal' either, as each party has its distinct role to play. It is a professional relationship that includes leadership from the franchisor and a degree of freedom for the franchisee.
Relationship Roles
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Managing this relationship in a franchise business should start with a reasonable understanding of each party's roles. While this may seem obvious, it's essential to revisit it now and then.
Franchisor – offers the business operating systems, tools, and training necessary for the franchisees to run their businesses.
Franchisee – Executes the business systems provided by the franchisor and pays money and royalties in return. Franchisees have the freedom to make their own decisions when it comes to running the business and hiring its employees.
Tips for Relationship Management:
• Treat the franchisees with respect – The give respect, take respect factor works well here. Remember, franchisor's role is to provide supply and assistance, and freedom since no one is the employer here.
• Practice clear and effective communication – it's crucial to get in touch with the franchisees on regular basis that goes beyond odd emails. This might include regular meetings, conventions, and training, taking note of suggestions for improvements, and keeping franchisees informed about the changes or new developments once they occur.
• Respond to Requests for Support – Franchisees might not be your employees, but they ought to still be given with all possible assistance. Hence, make sure that you reply on-time and promptly to franchisees' requests
• Show a Sincere Interest in the Franchisees-both as people and as business managers.
• Deal Quickly with Conflict – if conflict and disagreements are left unresolved, they will fester and grow. Conflict resolution should be outlined by mutual respect and listening. If all else fails, it is best always to seek mediation through the Franchising Mediation Adviser's Office.
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