Franchisors’ Communications: Don’t Ask –Don’t Know

by Ed Teixeira

In today’s age of high speed communication and technology there are a multitude of ways that franchisors can stay in touch with their franchisees. Read why franchisors need to have on-going communication with its franchise network.

There has been a school of thought held by some franchisors that no news is good news. I know, because early in my career there were times that I held the same opinion. The basis for this belief was that if a franchisee didn’t complain then it probably meant they were satisfied with their franchise. Unfortunately, there continues to be certain franchisors that prefer to have minimal contact with their franchisees apart from fulfilling their contractual obligations, although this doesn’t make good business sense, it happens.

Franchisors should be in touch with their franchisees on a regular basis since franchisees will communicate among themselves. If several franchisees have a problem with their franchisor the situation will be discussed among the franchisees before the franchisor staff may even be aware of the problem. Having an on-going and open communication flow between the franchisor and its franchisees can prevent a situation from getting out of control. Although the use of franchisee surveys can play an important role in fostering positive franchise relations there is no substitute for an on-going communication flow.

Benefits of On-going Franchisee communication: 

• Provides a forum to obtain feedback from both parties on a regular basis
• Presents the opportunity to discuss and comment on new programs, products or services
• Uncover potential problems, before they get out of control
• Solicit suggestions and ideas from franchisees
• The franchisor can introduce new programs and procedures to test the waters

Methods of communicating with franchisees:

• Webinars
• An independent franchisee association
• Regional meetings
• Conference calls
• Newsletters
• Intranet
• Skyping

Franchisors should maintain an open and scheduled communication flow with their franchisees. This practice will foster positive franchise relations and create an atmosphere where both parties can have a free exchange of information. In the absence of on-going communications a franchisor faces the risk of being isolated from its franchisee network.

© 2011 FranchiseKnowHow, LLC

Ed Teixeira is the President of FranchiseKnowHow, LLC. He can be reached at franchiseknowhow@gmail.com