The Importance of Strong Franchisee-Franchisor Communication
How Communication Helps to Improve the Franchisor-Franchisee Relationship
When it comes to any type of relationship, communication is key for the partnership to be successful. This includes business partnerships such as those between a franchisor and its franchise operators.
As a franchise operator, running a franchise and ensuring it is successful requires strong communication with the franchisor. Similarly, as a franchisor, the success of the franchise system is dependent on effective communication with franchisees.
In this article, we will explain the relationship between franchisor and franchisee and why communication is so important.
The Relationship Between Franchisor and Franchisee
A franchisee is a business owner that has purchased the right to operate their business using the name, trademarks, products, and services of another business known as a franchisor.
The franchisee is responsible for the day-to-day operations of the business, along with hiring and managing a team of employees. However, they must adhere to the franchisor’s rules and regulations regarding products, services, branding, and other aspects of the business.
The franchisor is the corporation that owns the name, business model, and branding that the franchise has been granted the right to use. In exchange for the right to use the franchisor’s intellectual property and business systems, the franchisee must pay an initial franchise fee along with ongoing royalty fees.
In turn, the franchisor will provide the franchisee with the training, support, and guidance needed to operate the franchise successfully and maintain consistency.
The nature of the relationship between the franchisor and the franchisee, along with the level of support provided by the franchisor, will be outlined in a legal contract known as a franchise agreement.
Why Communication Between Franchisors and Franchisees is So Important
As previously mentioned, communication between franchisees and franchisors is crucial for the success of both the franchise system and the individual franchises.
Below are some of the main reasons why:
It Ensures Both Sides Are Aligned
Franchisors and franchisees must be aligned to ensure that each side is getting what they need from the partnership. For the franchisor, this includes ensuring franchisees are consistently following the branding and proper procedures. For franchisees, this includes receiving the proper support and guidance needed to meet the franchisor’s expectations.
The best way to ensure both sides are aligned is through proper communication through regular touchpoints. This includes email communication, phone calls, video meetings, and even onsite visits.
It Ensures the Franchisee Is Properly Supported
In order to ensure that the franchise is successful and is following the guidelines put in place by the franchisor, franchisees rely on support when it comes to:
- And more
Clear communication enables franchisors to provide the necessary guidance and resources to help franchisees succeed.
It Makes it Easier For Both Sides to Provide Constructive Feedback
Feedback from franchisees is valuable in shaping the franchise system’s policies and procedures. Regular communication encourages the franchisee to provide important feedback that could lead to changes being made within the organization.
It Helps With Problem-Solving
In any type of business, issues are bound to arise. With effective communication channels in place between franchisees and franchisors, it becomes easier to resolve these problems quickly and efficiently. During regular touchpoints, franchisees can raise their concerns, and franchisors can provide solutions that work for all parties.
It Encourages Innovation
As franchisors stay up-to-date with the latest industry trends and innovations, open communication ensures franchisees are kept informed.
How a Franchisor Can Facilitate Communication With its Franchisees
Here are some ways a franchisor can facilitate effective communication with its franchisees and create a stronger and more successful franchising relationship.
Establish Clear Communication Channels
The franchisor should establish clear communication channels so that franchisees can contact them anytime they need support. The best way to do this is to assign a dedicated point of contact for each franchisee. The franchisor should also communicate their preferred method of communication with the franchisees. This can include email, phone, or video chat.
Hold Regular Meetings
The franchisor should hold regular meetings with their franchisees to discuss any issues, provide updates, and foster a sense of community. These meetings can be held in person or virtually.
Provide Training and Support
The franchisor should provide ongoing training and support to their franchisees to ensure they have the knowledge and tools they need to run their business successfully. This can be done through training programs, manuals, and other resources.
Listen to Feedback
The franchisor should not only be open to feedback from their franchisees, but actively seek it out. This can be done through surveys, focus groups, and one-on-one conversations. The franchisor should take the feedback seriously and make changes based on the feedback received.
Encourage Collaboration Between Franchisees
Communication and collaboration shouldn’t be exclusive to just the franchisor and franchisee. Franchisors should encourage collaboration among their franchisees by creating forums for franchisees to share ideas, advice, experiences, and best practices. This can be done through online forums, regional meetings, or other events.
How Gorilla Bins Has Created a Culture Based on Communication
Communication between franchisees and franchisors is essential for a successful franchisee-franchisor relationship. When looking for a franchisor to invest with, a franchisee should consider numerous factors, including the strength of the communication provided by the franchisor.
Gorilla Bins is Ontario’s leading waste management franchisor and prides itself on having excellent communication with all of its franchisees.
With several locations across the Greater Toronto Area, Gorilla Bins offers its franchisees lots of training and support to help them be successful. We also have a track record of producing successful franchisees and have tripled our revenue over the past five years.
Get in touch with our team today to learn more about Gorilla Bins and how we can help set your franchise up for success.