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How To Create A Good Franchisee/Franchisor Relationship

Aug 19, 2022 Franchise Information

Building a solid relationship between franchisor and franchisee makes all the difference when it comes to achieving success.

However, both sides should understand that creating trust and a good rapport is a two-way street.

Strong communication and loyalty on both ends are how a relationship continues to grow and thrive.

“I have been in franchising for over 15 years from commercial lending, a franchisee and a franchisor perspective, and there is no doubt in my mind that a strong, mutually rewarding relationship is the most important success factor for franchises.” – Melissa Eva, Manager, Franchising at Recipe Unlimted.

What can you do as a franchisee to ensure you and your franchisor partner can work together seamlessly for years to come?

Choose The Right Franchise

Chief Operating Officer of Swiss Chalet, Ron Simard (left) with Swiss Chalet Franchisee, Joe Terceira (right) at the Swiss Chalet Rymal Road, Hamilton location

First things first; you need to choose the right franchise. If you don’t select the right franchise for you, you may be setting yourself up for disappointment.

“For franchisees, it is important to research as much about the franchise opportunity as possible.” – Dan Monaghan, All Business

If you don’t believe in the brand and the people who work with it, you won’t be able to put all your effort into building something great within the franchise.

So, if your heart isn’t in it – walk away. That brand is likely not for you.

However, if you have found a franchise partner with brands you love and believe in, you’re on the right track.

Open Communication

The next most important aspect of building a great relationship between franchisor and franchisee is open communication, during the initial deal and beyond.

When taking on a business venture as large as opening a restaurant, you have to lay your cards on the table and ask for as much information as possible from your partners. The more you know, the more you can plan and prepare for.

“Outlining clear expectations, maintaining consistent communication and living up to your end of the bargain are the ingredients to any successful relationship—but especially one between franchisor and franchisee.” – Steven Beagelman, Forbes

A great partner will offer advice, and insights, and provide all of the numbers you need to see to make a wise investment decision.

Don’t forget that both sides of the deal are taking a risk.

Having full transparency during the business deal, and in the months and years after, will ensure that both sides can work together to solve problems and tackle challenges before they become larger concerns.

“Through honest conversation that is collaborative, franchisors can provide the necessary support and resources to their franchisees to help them meet and exceed goals at the unit level.” – Steven Beagelman, Forbes

Living The Culture

Next, it’s important to practice what you preach.

When sharing a commitment to the same brand, both franchisee and franchisor should find common ground within the culture they live and breathe each work day.

By aligning with the goals, mission, and personality of the brand, the relationship between both parties can grow based on shared core values.

“A franchise relationship will be successful when each side lives up to their responsibilities.” – Dan Monaghan, All Business

It’s a good reminder to continuously reflect on what the brand represents and to bring that attitude to every conversation – with customers and with partners.

Ongoing Support

Lastly, the secret to any successful business relationship is ongoing support as a great partnership goes well past the point of sale.

Therefore, both franchisee and franchisor should reach out to each other frequently to check in and stay up to date with any questions or concerns.

“Opportunities for open and honest dialogue should be numerous and consistent, whether in the form of weekly conference calls, Franchise Advisory Council (FAC) meetings, or even at the brand’s annual conference.” – Steven Beagelman, Forbes

While the conversation goes both ways, it’s important to advocate for yourself when you need extra support.

If your franchisor doesn’t know about a problem you’re facing, how can they help?

Pick up the phone and ask. That’s what your franchisor is there for.

Recipe Unlimited Franchising

If you have any questions about Recipe brands or franchising with us, please do not hesitate to reach out. We would be happy to provide you with everything you need to know about our team and how we can support you in your next restaurant business venture.

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