One of the most important byproducts of the franchisor-franchisee relationship is the state of franchise relations, which can range from positive to negative. The most common and immediate measure of franchise relations is derived from a combination of franchisee surveys, franchisor-franchisee litigation and feedback from a franchisee advisory committee or franchisee association.
A lack of positive franchise relations can be attributed to a number of factors, however, the process begins with the fundamental structure and administration of the franchise system. These factors represent the foundation of a successful franchise program. If the structure of the franchise program or how it’s administered is flawed or out of sync it will upend the delicate balance between the relationship of a franchisor and its franchisees.
In order to establish and maintain a positive relationship between a franchisor and its franchisees, there are certain principles that must be followed:
Positive franchise relations are an important element of a successful franchise company. Following these steps represents the building blocks of a solid franchise relations program.
60% of franchisors provide a financial performance representation (“FPR”) under Item 19 in their Franchise Disclosure Document.
As part of a franchise candidate’s due diligence process, it should be expected that certain questions will be directed to franchisor staff.
It was quickly apparent that some employees struggled working from home. They had never experienced the challenges associated with time management.
There have been various changes in average franchise investments during this time, some changes were more dramatic than others.
Before a prospective franchisee invests they must review the information disclosed in the Franchise Disclosure Documents.
A good consumer experience is not a reason to invest in a franchise. It skews the decision-making process of a prospective franchisee from start to finish.