Doc Franchise Writings and Ramblings

The franchisee/franchisor relationship is a unique one. It differs significantly from the average employee/employer dynamic in various ways. It also is vastly different than most every relationship a small business might otherwise have with any of the stakeholders in its success.

Over the course of 26 years, I've been franchisor and a franchisee at different times and in various roles of organizations as well as consultant. Ensuring an optimal relationship between the "zee" and "zor" will not only improve your bottom line, but perhaps your emotional well-being as well.

When you're new to an organization, if you have gained any wisdom at all from your years on earth, you quickly understand the larger purpose of having two ears and one mouth. There is much to listen to and many to learn from before you should start making mission critical decisions. I am 12 years younger than my next nearest sibling. Ive been used to people around me thinking they know more than I do. Over time however this positioning and the skill it developed (e.g., listening) have proven golden.

1.Always Give the Benefit of the Doubt

As a franchisee: Let your franchisor know you will give them the benefit of the doubt when there are changes occurring within the organization. You know that the franchisor needs to make decisions for the present, as well as the future of the organization, and this can be the most critical aspect of your relationship in franchising. By giving the benefit of the doubt, the first thought that comes to mind should be: There is a good reason this decision or issue has been addressed this way, and I should find out more before having an emotional reaction.

This self-talk is important, because a franchisor will make decisions not only with information they have today, but also based on things they know or believe to be true in the future. Remember, the top two assets to a franchisor are their franchisees, and their brand. If a decision damages either one (or both), they are hurting themselves just as much as their franchisees.

As a franchisor: You know a franchisee invested their future in your business model and wants to deliver the lifestyle and profits you expect. When a franchisee reacts emotionally to a decision you make, give them the benefit of the doubt before diminishing that franchisees status in the minds of you and your staff. A franchisor may subconsciously put blinders on and may tend to give less credibility to that franchisee. Conversely, when you make an assumption about a franchisee, or react to something they did, only understanding part of the situation, then you will damage the relationship and that all important trust-bond.

Maintain trust in one another, and work out disagreements respectfully and with the understanding that both of you want the same thing--mutual success.

2.Seek First to Understand

Dig up all those old listening skills you had while dating (remember hanging on every word your date spoke?).

Sometimes, we're so busy that we don't take the time to truly understand where someone is coming from when engaging in a discussion. We misunderstand the true issue being raised by honing in on one element of the bigger picture. If someone doesn't like your new marketing plan or they receive poor service from your staff, or, given today's' economy, they're stressed out more than normal, you should take a second to ask them what else might be bothering them. It will make a world of difference.

As a franchisee: Clarify your message if you are unsure of the core issue at hand, and dont be afraid to speak up. Recently, a franchisee was talking with me about business expansion and potentially adding staff. He appeared unusually short, and was having difficulty grasping the strategic nature of our topic. Finally, I simply asked him if there was something else that was bothering him. He shared that his cell phone provider had issued an incorrect delinquency, and due to that, his banks loan committee, which happened to review his line of credit around that same time, lowered his LOC by 50 percent. This was a huge issue that had not been brought up yet, and given the cash flow impact, it would certainly limit this franchisees ability to pre-load expenses or fund capital improvements without being resolved. It was a good thing I asked; its happened to other individuals Ive spoken to, and has a trickle-down effect on other decisions and attitudes about the business.

As a franchisor: There may be distractions or various tangents of an issue that keep you from digging into solutions. Once you have a full understanding of a situation, work with your franchisee and use your instincts and skills to find the optimal results. Various solutions will arise from the brainstorming process, and you could learn new strategies and innovative solutions by listening, as well as offering your own skills.

3.Visit Your Teams One-On-One

As a franchisee: Technology is great, and phones, email and even web-conferencing have improved communication in many ways, but a one-on-one visit to your corporate office is a great way to improve your business. Your accomplishments depend on a successful execution of your model, and the franchisor wants to help you. Take the time and spend the money to fly or drive to their headquarters and schedule time with everyone--from the customer service and support to the president, CEO, and owner(s) -if possible. Let them know how you're doing, your future goals and what they can do to help you achieve the success you desire.

Its not uncommon at times to feel isolated or disconnected from the organization. Seeing the big picture or the strategic nature to the operation can be difficult. If you own a retail or food service franchise, you're so busy that simply running day-to-day operations can be overwhelming. Remember that franchising offers support, templates and a relationship that drives performance and a unified sense of purpose: You fail together, and you succeed together.

As a franchisor: Most solid franchise systems have field operations visits, an annual convention or even regional meetings scheduled throughout the year. These are great for communicating, but in franchise leadership you should take the time to be at these events, and strongly convey your vision for the franchise company. Your presence demonstrates this to your prospective and current franchisees, and shows them how serious you are about their business succeeding. Telling them that you want their advice is a tremendous exhibition of your willingness to do what it takes to learn from them and expand your business. Make time to listen to them, and assist in developing their game plan, or how they can utilize the resources within the system to succeed.

Successful relations between franchisor and franchisee are paramount to long-term growth. Both in good and bad economic times, utilizing the benefits and nature of the franchise relationship will help overcome many obstacles, while giving you the best chance at success.

John is a 26-year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates and can be reached at docfranchise@gmail.com. or direct office 480.838.1641