Deciding to invest in a franchise business means you are entering into an agreement with an existing and established brand. The franchisor’s role is to provide you with a business model, systems, processes, training, and support; and in return, you operate an independent business within the confines of the agreement.
Because of the interconnected relationship between franchisor and franchisee, it’s critical to have an honest and transparent relationship. A mutual understanding of each party’s needs, expectations, and points of view ensures the maintenance of a mutually beneficial partnership.
Here are three ways to create a healthy franchisee / franchisor relationship:
1. Communicate in a clear and open way
Franchisors know how important communication is and thus consistent engagements with their network of business owners is foundational. For example, as we have progressed through the different stages of the pandemic, Cash Converters undertook to host weekly, bi-weekly, and monthly virtual webinars to ensure our network was, and remains, fully aware of the implications of the lockdown regulations for their stores. Because communication is a two-way street, our franchisees have access to our team of experts at the head office.
2. Work on your emotional intelligence
Emotional intelligence is critical – and the ability to separate yourself as a franchisee from any negative sentiment within the network allows your focus to remain on what you can control – the four walls of your store. Navigating through unpleasant scenarios with the highest level of emotional intelligence will help you in your business and your relationship with your franchisor. Ensure you always respond in a thoughtful rather than being reactive.
3. Being accountable and responsible
In order to build and maintain a strong relationship for the duration of the franchise term, it’s critical for both parties to understand the role each plays in the relationship. Before agreements are entered into, it’s advisable to sit down and discuss the ways of working in full. This prevents anyone from entering into an agreement with unrealistic expectations.
Effective communication makes for a sustainable partnership for your franchisor. Ultimately, this produces great results for your business and the network as a whole.