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Franchise relations is used to refer to the state of the relationship between a franchisor and its franchisees, which can range from positive to negative. The level of franchise relations is one of the most important issues that franchisors deal with, in addition to growing the franchise network and increasing sales and profits. To be considered one of the best franchises to own, emerging and startup franchise systems, need to have positive franchise relations, otherwise it will be challenging to grow a successful franchise network. The top franchises have a strong relationship with their franchisees. For example, successful restaurant franchises like McDonald’s and KFC continually strive to maintain good relations with their franchisees. This often means including certain franchisees in major decisions that impact both parties.
To have a top franchise it’s important to build an infrastructure to establish and maintain a positive relationship between the franchisor and franchisees. Since prospective franchises will want to obtain feedback from existing franchisees, a poor relationship between the franchisees and its franchisor can poison the well. In many cases, it will turn the candidate away from that franchise.
Positive franchise relations require a strong foundation that must be built by the franchisor. Following are the important components of that foundation:
Positive franchise relations are an important ingredient of a successful franchise company. Following the steps that I’ve outlined, represents the building blocks of a positive franchise relations program.