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Relationship 2018-04-06

Factors That Build Relationship Between Franchisee & Franchisor

To build a successful enterprise, the relationship between franchisee and franchisor should shoulder the responsibilities equally as it is a mutual relationship.

By Nibedita MohantaSenior Sub-editor

 

The entire game of business depends on two sides, ‘buy’ and ‘sell’. One buys from somewhere and sells to others and the chain goes on and on. The volatility movement of product and money keep the business’ movement steady.

We all are tied to one another by an invisible thread called, relationship. In business too exist relationship; the relationship is not just in between buyers and sellers but also in between franchisors and franchisees.

The common facts among all the existing relationships on this earth are same. And to build a successful enterprise, the relationship between franchisee and franchisor should shoulder the responsibilities equally as it is a mutual relationship.

India is divided by cultures and united by food, thus in restaurant business, the relationship between franchisee and franchisor demands an extra push on the existing factors to keep the wheels of the business rolling.

Here are other factors, which the franchisee and the franchisor need to work on while building their relationship:

Partnership:

The franchisor dares to open franchising opportunities for franchisees, only when the brand has been made. It takes a huge amount of time, patience and energy from the franchisor’s part in making a brand. Thus it is a difficult part on the franchisor’s side to trust on a stranger to let him carry his brand in some other place, where he personally would not be able to take care directly.

The partnership is important because the franchisor wants to let franchisees carry his brand on their shoulders but the franchisees should also be responsible enough to maintain the name, fame, and quality of the brand. One has to be 100% sure, both financially and mentally, for being able to take care of a brand before getting into the partnership.

Trust:

Trust is something, which demands to be earned not to be served on a platter.

The franchisor too has to trust the franchisee and help him/her in setting up the guidelines as well as in overcoming the basic problems, which he would have faced earlier. This will help in boosting the morale of the franchisee, as well as the trust for the franchisor.

The franchisee is getting a well-established brand to run, the basic legwork of building a brand from scratch has already been done by the franchisor. Thus to build the trust factor, he/she has to only maintain the product’s or service’s quality, name and bring in the profit.

Mutual Understanding:

Both parties should have a mutual understanding because ‘One cannot clap with one hand.’

The franchisor being a little extra concerned towards its product or service or brand is understandable, which is why a little interference in the development of the brand or cost-cutting decisions can be taken by him, without explaining things. The franchisee should not protest or jump in the line on the franchisor.

Moreover, there are instances when the franchisee takes the liberty of making small changes in the brand in his/her store/ shop, such as introducing a local flavor in the restaurant, or serving a particular dish as complimentary during festivities will cause no harm to the brand.

On the other hand, it will encourage the other franchisees to spread the brand’s name with the addition of their liberty. Any which way it will help in making the brand.

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