Do Business Well

• Aggressive brand building. Marketing efforts in the widest sense of the word must surely rank among the franchisor’s prime obligations. Market research and product development are of equal importance. All these activities, if performed diligently, will result in tangible benefits for franchisees and go a long way towards ensuring harmonious relations.
• Clear channels of communication. Franchisees hate it if they have a problem and cannot reach anyone who has the knowledge and / or the necessary authority to offer an immediate solution, as this can cost them business. They expect a system to be in place that is capable of taking care of all foreseeable problem-solving needs, promptly and efficiently. Moreover, franchisees like to be kept informed of new developments within the network before the public gets to hear about them. Few things can be more unsettling for a franchisee, especially if he is relatively new in the business and not all that sure of himself, than to be told by a prospective customer about new developments within his network of which he had no prior knowledge.
• Encouragement to offer input and voice constructive criticism. Being in touch with customers all the time, franchisees are in an excellent position to provide feedback on end-user response to marketing campaigns or their reaction to the introduction of new products and services. For the same reason, they can be relied upon to uncover shortcomings in established systems and procedures. If they do, they expect to be taken seriously, and this would include an earnest effort to evaluate the merits of constructive criticism offered by them. Should a franchisee’s proposal pass the evaluation phase and be incorporated into the network’s systems, public recognition, perhaps in the form of an award presented at the annual conference, will be much appreciated.
• Consultation. Franchisees like to have a say in the way the brand is managed and their advertising contributions are spent. They also like to feel that they have a choice if asked to make changes concerning systems or the product range. In the interest of good relations, persuasion should be tried. Only as a last resort, in instances when the franchisor is convinced of the merits of a controversial measure and its benefits to the entire network, should a binding directive be issued.
• Formal representation. Once a network has grown into a size, be it in numbers of outlets or in geographical spread, that makes regular monthly or quarterly round table discussions with all franchisees impractical, the introduction of a franchisee representative body will go a long way towards satisfying franchisees‘ desire to be consulted. Franchisee Council, Advisory Council, Marketing Committee, call it what you will, seasoned franchisors tell us that the creation of any such structure, provided that this is handled correctly, generates positive spin-offs, especially in the areas of franchisee relations and brand building.
• Peer interaction. To operate a small business is a lonely occupation and, by and large, franchisees tend to look forward to the opportunity for peer interaction annual conferences create. However, franchisees‘ main concern will always be the operation of their own businesses at peak efficiency. This will keep them on their toes throughout the year, so if they take time off to attend the annual gathering, they tend to expect something of a little more substance than just a big party. A thoughtfully arranged core programme that includes, for example, presentations on the release of new products and marketing plans for the forthcoming year, supplemented by a keynote speaker who deals with a topical subject in an informative and entertaining way, would meet their expectations well.

Summary

Franchising is a people business and people depend on two-way communication almost as much as they depend on an adequate supply of oxygen. Whether you are an established franchisor or franchisee or are headed in either direction, as long as you keep this simple fact in mind, inter-network relations will not be much of a problem.

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• Mutual Expectations (franchisor)
• The parties to the franchise agreement
• Some Franchise Terminology
• Business format franchise
• Is a franchise the optimal solution? From the prospective franchisor's viewpoint
• Selling the Franchise
• Franchising Disadvantages Part 2
• Investing in a franchise: Take it slow
• From the franchisee's viewpoint

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