Five Keys to Positive Franchise Relations
Positive franchise relations are a necessary component of a
successful franchise system. Learn how to achieve positive franchise
One of the most important attributes of a franchise system is to
have positive franchise relations. Itís a subject often written
about and yet the components of franchise relations are fairly
There are five ingredients to a positive franchise relations
1. Franchisee profitability represents
the very foundation of a successful franchise program. Without
profitable franchisees, there will be a lack of franchise growth,
poor franchise relations and more likely than not an atmosphere of
negativism surrounding the franchise system. From personal
experience, I can say that without profitable franchisees all of the
meetings, conferences and webinars will not lead to positive
franchise relations, unless it leads to further action by the
2. Have a vehicle that provides
franchisees an opportunity to present further complaints or concerns
to senior franchisor management. There ought to be a timely response
to franchisee complaints. Itís not a strict requirement to have a
franchise advisory council or independent franchisee association,
although it can certainly help. In fact a recent analysis of several
hundred successful franchise systems revealed that half had no
organized franchise association. The reason is most likely that
profitable franchisees satisfied with the financial performance of
their franchise have far less complaints than others.
3. Communicate any impending or scheduled
changes in franchise marketing, operations or advertising to the
franchisees promptly. Donít let the news out via the franchise
grapevine. A good suggestion is to have a franchise marketing
committee that includes franchisor and franchisee representatives.
The key message is to keep franchisees involved in the process.
4. Recognize significant franchisee
performance on a regular basis. Using newsletters, bulletins and
conferences to recognize franchisees is an important component of a
franchise relations program. Recognition shouldnít be limited to the
annual convention. The benefits go beyond recognizing franchisee
performance since it can motivate other franchisees and encourage
them to contact the top franchisees for advice and tips.
5. Put franchisor egos aside when needed.
Iíve observed a number of instances when a key representative of
franchisor senior management refuses to acknowledge or accept
criticism of the system until a mini-insurrection arises.
The road to positive franchise relations starts with profitable
franchisees and travels along a path of franchisor communication, a
willingness to consider change and openness between the parties.
© 2015 FranchiseKnowHow, LLC
Ed Teixeira is the President of FranchiseKnowHow.com and Chief Operating
Officer, FranchiseGrade.com. He is a former
franchise executive and franchisee. He can be contacted at 631-246-5782 or