As a franchise consultant, I have spent hundreds of hours working on what affects a quality franchise relationship, and over and over the same answers were revealed. Although all franchisors and franchisees feel they have problems that are unique to them, I found that their problems are not so unique. Yes, they may look different from the surface, but they are all grounded in some major themes.
From my research, four major themes emerged that directly affect the quality of relationship between the franchisor and the franchisees:
- Expectations versus perceptions of the franchisor and franchisee;
- Collaborative communication and how to make it more effective;
- Communication barriers that affect the ability of the franchisor and franchisee to work together effectively; and
- Trust and its effect on franchisor/franchisee relationships.
Expectations versus perceptions of the franchisor and franchisee:
When franchisor and franchisee expectations are not aligned, each will be working toward different goals. In many cases, this becomes apparent when a franchise organization does not appear consistent or unified. If the franchisor's goal is to sell the highest quality food, but the franchisee's goal is to sell the largest quantity of food regardless of quality, many issues will arise, from accusations of poor product quality to differences in advertising methods.
I found that the forming of expectations and perceptions starts at the beginning of communication between the franchisor and the potential franchisee. In most cases, perceptions are already set from the experiences the potential franchisee has had as a customer with the franchise organization. But the real expectations of the relationship start to form at the first meeting between the potential franchisee and the franchisor.
The more qualifications a franchisee must go through, the more in line expectations seem to be. Ultimately, finding the right franchisee for the right franchisor is the key. This match will only be achieved through complete honesty and openness from both franchisor and franchisee, so that both parties understand their full commitment to one another. The best franchisors know this, live by it and grow like crazy.
Collaborative communication and how communication can be effective:
I have found that there are many communication problems between franchisors and franchisees. Some of the issues are a result of two problems: a lack of effective communication, and the need for collaborative, open and honest communication.
My research showed that franchisors and franchisees wanted better communication and were willing to create better communication. So why is effective communication so elusive? For the most part, it’s because we do things that hinder our communication. We assume others know what we are saying, read what we write and understand how we feel. This assuming makes for poor communication, and often results in a complete breakdown in communication. I’ve also found that, when communication is done in collaboration with all stakeholders, it is much more effective.
Communication barriers reduce the ability of the franchisor and franchisee to work together effectively:
One of the largest communication barriers I have come across occurs is when the parties feel they are not on an equal footing. In many cases, franchisees feel they can talk until they are blue in the face to no avail. They believe their franchisor will do whatever he/she wants in the long run. On the other hand, I have come across franchisors that won’t make choices unless there is backing from a majority of their franchisees. In these cases, the franchisees feel their input makes a difference and give it willingly.
In my experience, things are always unequal if one party feels that its input has no sway or power to influence. This is why I have always tried to have franchise organizations develop ground rules that simply state what is up for discussion and what is not. Breaking down barrier allows collaborative communication to take place, and from there, good things follow. Many times it helps to bring in a third party, to find out if and where the barriers exist, as it is often hard to see the barriers that we have helped to create.
Trust and its effect on franchisor/franchisee relationships:
Trust is one of the most important elements of a franchisor/franchisee relationship. Without trust, there is no way to ground the relationship, as there will not be effective communication or effective collaboration.
Interestingly enough, my research showed that most franchisors did not even realize that there was a problem with their franchisee's trust. In some cases, when the franchisor found out there was a lack of trust, they were offended at first; however, trust is usually a combination of unmet expectations and poor communication. When we fix our communication breakdowns, we can usually improve our trust factor. Trust is not something that comes naturally for most; it must be earned. Just because a franchisor has a franchisee sign a contract, it does not mean they are building trust.
Keep some of these ideas at the forefront of your mind when working with your franchisees or franchisor, and I believe you will build a better relationship and help your company be much more successful.
Steve is a consultant specializing in organizational development within franchise organizations and educational organizations. You can contact him at +1.604.786.5677.