Doc Franchise Writings and Ramblings

Often when someone talks to me about franchising they will ask, "So, what are the hot franchises these days?" My answer is usually this, "The ones that most closely align to the new franchisee's personality and passions."

So let me ask, are you one of those who think a franchise’s success is the primary reason to buy a franchise? In other words do you think since they are successful I should consider becoming a franchisee in that particular business, that particular brand?

If you’re looking to become a franchise then you are likely to think just that way.

Don't!

“Hey, if it makes money for others, it’ll make money for me.”

Franchise Opportunities and Your Personality


If you truly want to find long-term happiness in a franchise, it’s critical you match your unique style, your personality, to the franchise’s operating style and that is an extension of the franchise companies culture. Every franchise either begins thoughtfully with a specific personality model in mind or develops one as part of their organizational development over time.

That is, the personal characteristics required for high levels of success regarding the franchise’s day-to-day activities need to relate to, not just your knowledge and skills but also your personality and how well they fit in with the franchise corporation.

Why?

Let’s look at the obvious…you certainly don’t want to make a significant financial investment and time to own a franchise you won’t enjoy. Work, career and business ownership enjoyment all are directly tied to how we define personal satisfaction. Personal satisfaction is not just a functional outcome of the work but a condition of how the process and components of the work/business we are accountable for is managed. Study after study conducted on behalf of franchising verifies that the primary reason for turnover and failures in a franchise is in a specific companies inability to match franchisee's with the culture that permeates the organization.

Let me give you an example.

Let’s say you’re naturally an introvert, no matter how successful a business may be for others, if an extrovert personality is required for success, it won’t be right for you. Being a Sandler Sales franchisee requires significant face time and the ability to execute the companies own process (How To Sell...) to your potential clients. Some may look at the business and think, "I am an executive. And the clients in this franchise business model are similar to me, they too are executives." But if you are not a high social contact person you will hate this business model. And, no, you cannot, in this model shrug these duties off on someone you hire.

You would find the same to be true of direct advertising franchises. You come out of corporate America and the clients in much of direct advertising are business owners and management but if you are not a people person this is a bad fit for you.

Well the franchise company will let me know if I don't fit won't they? No, not all of them use these forms of assessment and many who do aren't trained in either how to read them or their importance. The good news is that many of the best franchises use them but might not take them as seriously as you would want them to.

You’ve got to match your personality and your passions as well as the result, what you want the business to do for you, with the right franchise model. It is NEVER about liking the product or “look of the business”. It is not even enough that the franchise company has a truly button-downed, sure-fire approach.

How to Find a Franchising Opportunity Right for You

If you elect not to use a professional consulting service I would suggest you start by looking at a franchise business from the point of view of your personality.

Assess your behavior. Many behavioral and personality assessment surveys are available and they can assist you to determine your unique personality.

With this knowledge in hand, create a short list of franchises available that you "believe" match up with your personality profile.

A shorter method to this discovery is to use a franchise consulting firm. Many charge very little and some charge their consumer clients nothing and provide highly astute processes. Firms such as matchpointnetwork.com can help you do this effortlessly and immediately, at no cost. The reason it costs you nothing is that franchise companies are more than happy to pay these companies to find incredibly high quality candidates. As a matter of fact candidates that work through companies like www.matchpointnetwork.com have two things that every franchise company craves:

1. Franchisee's that perform at higher levels which translates to more money for everyone
2. Higher success rates for longer periods of time

MatchPoint queries the franchisees within franchise systems and outlines the profiles of their most successful franchisees. This also allows them to only recommend to their candidates the best of the best franchises in any given business category; talk about a time-saver!

Regardless of how you go about your investigation and learning about franchising let me provide a word of caution, don’t rationalize your profile or make excuses such as, “I’m the exception”…you’ll only be postponing the inevitable…a poor fit.

By digging into, "who you are" and how you operate most joyously you produce an atmosphere and process that increases the level of success you will achieve as you consider franchising as an alternative way of living your life and earning a living!

- A Compendium of Info For Franchisor and Franchisee - Ergo Certainly not Exhaustive

A few weeks ago I promised I would develop some thinking about the Franchise Disclosure Document (FDD) previously called the Uniform Franchise Offering Circular (UFOC). Let me clear the air about the FDD in a single sentence as it relates to how I feel about it: The FDD is a significant and important document.

Any franchise professional, franchise attorney, franchise company executive, franchise consultant...even franchisee should agree that it is a significant starting place in your understanding of the franchise you have under your review.

It is so important to me I would suggest you read 3 or 4 FDD's! More on this later.

Franchiser Key Point 1:If a franchise company has someone they believe to be a "hot" candidate and somehow the person drags their feet on the reading of the FDD, you should not shout for joy because they won't have to deal with the significant aspects of the business that might concern them once they are read and revealed. No, you should be concerned because they are taking are not facing up to A) the process of acquainting themselves properly with your concept and B) Operating by their gut which may or may not be in synch with your business model.

Now, to a thinking man, especially someone who revels in details and information, it would be unthinkable that someone would ignore this document. I am sure that it seems ridiculous, given the size of the investment, that anyone would just not pay attention to it.

But, the reason you read the FDD isn't why you might think. The Federal Trade Commission (FTC) does in fact (regardless of what they might otherwise state) evaluate and approve every document. In fact, if you read 4 or 5 of these you realize that 80-90% of the content is identical one to the next regardless of the kind of franchise or brand. Why? Because they all need the FTC's approval. A Simple way to do this is to make sure that the language used by previous approval's is part of your document.

Franchise Candidate Point: You don't read the FDD to determine how the franchise company is attempting to trick you. They're not. They gain nothing by tricking someone into a multi-year business relationship! You read it to understand that particular franchise companies nuances. The document has no legalese and is written in 5th grade English. You can or should be able to understand it.

Franchise candidate even when considering a highly recognized national branded franchise opportunity, you still need to read all the franchisor's documents carefully, yes, every single page. Because you need to understand your responsibilities to operate your business and there minimum level of commitment to train and support your efforts.

If there is anything about the franchise business opportunity that you do not understand (you may be new to the field or to a form of marketing, etc.) you need to have it explained to you by the franchising company (and they will) or a franchise consultant (always a good idea) or maybe a franchise attorney (But it's kind of silly to have someone explain what is written in 5th grade English then charge you $1000-$7500).

There is a huge difference between franchise business opportunities to invest in and, typically those differences show up in the unique business proposition of the operating systems and the expenses of a particular franchise offering. The 15% unique content you find in an FDD is found here and you need to understand it thoroughly.

Franchisee Candidate Point: The terms, conditions, financing, equipment, exclusive territories and price will surely be different, sometimes by extremely wide margins from one franchise to the next. You will find this information within the FDD.

Some words of caution to everyone.

Consultants: Do your job and understand, deeply, the concept of the FDD. You do not have to know every franchise FDD that you might be associated with; particularly those consulting firms that evaluate and have hundreds in their inventory. You do have to be able to talk a candidate through each of the 23 points of the FDD so they know what it means. You also need to have enough knowledge to help them understand why certain language is used, how it protects the system, a part of which they are considering becoming. Otherwise they get stuck in "Us vs. Them" mode and the document appears to be written with the company only in mind and not with the entirety of the franchise system.

Franchise Companies:Every year you have to "re-up" your agreement with the FTC and with the 13 (currently) unique registration states. Use this time to consider ways to simplify the language and create an agreement that has more possibilities to develop "win-win-win" scenarios (You, the franchisee, the end-user). Anything you can innovate that gives your system an opportunity to rise to a higher level of relationship and client concern (franchisee's and end-users are both your client) will provide you with energy and positive momentum. You might consider using representatives within the franchise system to do this. If you have questions about this give me a call. I can help.

Potential Franchisee or Franchisee Candidates The Franchise Disclosure Document is meant to provide you with information relating to:

1. The business of the franchise company

2. The operating system and how it works, is trained and supported

3. Your involvement, responsibilities and expectations

4. The investment and ongoing expenses related to the business in their entirety as understood today.

5. How the franchise company, (with the support and help of the FTC) is attempting to ensure the survival of the holistic and entire organization. Remember, today you are on the outside attempting to protect your right and reduce your risk. But one day you might be a part of the organization. Ask yourself, what rules and regulations do you want the next guy to have to follow so that your business, good name and reputation and ongoing reasonable expectation of success is not diminished?

One last note to those of you looking at franchise disclosure documents, remember 438,000 +/- franchisee's operate in the United States today. They all signed franchise agreements having had to review an FDD or similar document (UFOC). These are not all dumb people. Do yourself, the franchise company, and perhaps the consultant who represents you (especially the consultant) a favor. Do not make yourself look dumb. Don't try and talk anyone into the notion that this document is some evil, diabolical trick to destroy you and your family to the 5th generation. Along those same lines you need to know that no one, operating a franchise in the USA (or Canada) goes to their place of business each day and opens up the FDD, reads it, so they make sure they don't brake a rule. The document information is common sense people. Owning a franchise, regardless of what goofy thing you hear is simply another way of owning your own business. Only you and your crew can ensure your success because you are the ones daily who are on the firing lines. The FDD simply gives you the parameters within which to operate that potential success.

Make the FDD work for you but then put it on the shelf. You'll be opening it again about 6 months prior to deciding whether you wish to re-sign your agreement! And that will be 3, 5, 7, 10, 12 years down the line.

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

Life has a way of manipulating the circumstances and the conditions. Often executives and those vulnerable to economic downturns (finance, technology, real estate, mortgage industry, and manufacturing come to mind) turn to consideration of business ownership.

I'm often asked when I speak to groups, "Are there some hard and fast rules of doing a proper examination or investigation of the various kinds or brands? Can you better understand the business if you do certain things?" The answer is mostly yes. The more you actually know the more confident you are once you make a decision.

But there are dangers as well. Often we study so much the line becomes blurred between what is factual and actual and what is someone's overly blustered and inaccurately stated opinion or random thoughts.

Here are some things I recommend to you that you DO:

1. Investigate franchise opportunities by getting first-hand information. By visiting a franchise trade show or contacting a franchise consultant or broker you will get direct information; point A to Point B. Don't start by studying the fringes.

2. Talk to the present owners of the franchise. Ask them how pleased they are with their decision, are they progressing as anticipated, what were the surprises and would they do it again. Inquire if the franchiser is responsive to their needs and whether the training was adequate. It is important to determine the integrity of the franchiser in following through on promises to provide strong initial training and to supply immediate technical assistance when problems arise. Find out what the top values they are receiving as a franchisee.

3. Consult professional and seasoned franchise advisers as opposed to just anyone who is willing to provide an opinion. I would include a small business CPA amongst your advisors. If you do not have one ask the franchisees themselves. On the legal side you will find most franchisee's have not used a lawyer simply because franchising is so highly controlled and regulated. If you feel you want a lawyer make sure it is truly a franchise attorney. Franchise law and business law are Venus and Mars. Don't pay your attorney to learn franchise law by having him come in and make you look like an idiot to the franchise companies because they want you to demand changes that cannot be made.

4. Read the Franchise Disclosure Document (FDD) with understanding. This is where having a franchise consultant can be a great help. A seasoned professional will be able to let you know what is standard, boilerplate franchise language and what you need to be sensitive to. Most often you need to be sensitive to Items 3,4, 5, 6, 7 and 19 and recognize the rest relates to general business standards.

There are exceptions however. The good news is that an FDD is written in fifth grade English and is free of all legal jargon. You will be able to read it and understand it. That "easy-to-read" too is a mandate by the Federal Trade Commission (FTC) and must be adhered to by the Franchise companies when they develop their documents. And, just so you know, the Federal Trade Commission requires all franchisers to supply prospective franchisees with a FDD at least 10 days before they are presented with agreement documents.

I will create an entire blog to the topic of reading and FDD soon.

5. Use a franchise consulting service. Franchise consulting services earn their keep by doing two things that make the life of a potential candidate easier. First, they evaluate franchise companies. It is critical for the consulting firms to understand the level of success and the profile of the best franchisees within a particular franchise companies system. How else can they provide that company with the right potential candidates? You can see how this serves your interests as an investigant.

Secondly, they also assess the candidates to determine their strengths, skills, education, prowess, passions and interests. The combination of those assessments creates powerful synergy for success. With our technology today there is no need to study thousands of franchises to reduce it down to a few. Allow the experts to do what they do best and assist you in your efforts to find just the right company.

6. Compare other franchise systems in the same field. Look for franchises that are solidly managed, well financed, and are positioned in a growth industry. Investigate any regional franchises that are doing well but have not yet gone national in their distribution. Remember, the biggest is not always the best. The biggest franchises may also reduce your chances of success and growth because the territory and sites available are limited. Look for businesses that have a record of success that have recently begun to franchise. Remember, the franchise could be new but the parent business could be 3, 5, 10 years old or more and be rock solid.

7. Evaluate yourself and see if franchising is really for you. Franchisee, regardless of what you think you read in an FDD or franchise agreement is simply another name for independent businessperson. Nobody from "Headquarters" shows up to open your doors of business each day. If it is going to get done YOU and YOUR staff who are the ones to get it done.

Most people aren't ready for business ownership mentally or emotionally...at any level. They can't imagine paying a fee to someone so they can "maybe" make a living. Can you see how if you start with that thinking you aren't even in the same game as a business owner?

No, if that is you, come back once you realize what business ownership can provide to you.

If you are not ready for franchising I guarantee you will suck at being a fully independent business owner where everything is your responsibility (Operations, Training, Hiring, Marketing, Sales, Administration, Finance, Accounting, Technology, Visionary Assessment, and MUCH more). Franchises provide you the guidelines for all of that and much more without requiring you make key decisions in areas you are not expert at.

8. Count the cost associated with entering into the business.I was never concerned with anything about the finances but three things: Do I have the liquid capital to invest in this business that I deem as reasonable and prudent for my life situation? Will it provide me with the kind of living I would anticipate based on the investment level and my personal needs? Will I have a salable asset when the time comes for me to exit the business and will I be pleased with that potential selling price? Most of the thinking processes need to be on the first item. Only put out in liquid capital what you want to afford and only sign off on a business where the full investment is in your comfort zone as well. Most businesses have a financeable component plus the cash needed. Make sure you understand them both.

9. Check the history and experience of the franchise's officers and managers. The FDD in Item 2 contains a disclosure of all officers, their experience, business history, criminal or material civil litigation currently pending or completed against the franchiser involving any alleged allegation of fraud, misrepresentation or any violation of the franchise laws. This explanation goes back 10 years and includes any business dealings they have had that relate to the current business. If you find one with little or no litigation, mediation or arbitration it tells you the officers of the organization view business practices on a personal level and are not prone to throw lawyers at you when disagreements occur...and they will occur.

10. Research, research, research. Buying a franchise is a significant life decision. It is up there with Marriage, Buying a House and Having Children. The difference is you didn't take nearly as much time or concerted effort as you will on this one. More good news is that all the information will be delivered to you. The more professionally you go about your investigation the better your decision is likely to be and the less risk you will be exposed to. Ultimately it is your decision to choose or not choose a business. At the end of the day make sure you have as much personal confidence your choice will provide your expected potential outcomes.

Here are the things I recommend that you DON'T:

1. Shotgun approach to your investigation. Keep things in order. Understand the business components of the business, within their categories, thoroughly. Review the market the business is in. Review the FDD and your relationship with the franchise company. Go through a high level discussion on training, operations, marketing and sales. Spend time with franchisees to get an insiders look at the business. Take what you've learned and assemble it into a plan and perhaps a business proforma.

2. Overextend your finances. Establish a budget prior to your investigation. The budget should be based on your comfort level of investment as well as your comfort level relating to how much credit you are willing to extend. You may be able to afford 2 or 3 or 5 times more than the actual costs associated with a business but the key is what you are willing to extend yourself to do. By the way, just so you know, the more established a franchise, the less risk it "might" carry but the higher the investment needed. The McDonald's, Kentucky Fried Chicken and Pizza Huts now require steep investments. Even some well established home-based franchises may have royalty fees that are steeper because they've earned the privilege of higher earnings for the corporation. Always plan for more expenses than you think you'll have and typically in a start up franchise that might be $10-50,000 more than stated. This is where talking to the franchisees helps.

3. Skip consulting the professionals. Skimping on a good small business CPA and their fees or a seasoned franchise consultant will deprive you of critical information. By the way, most franchise consultants cost you nothing. They are paid by the franchises. You pay not one penny more than you would had you gone directly to the franchise.

4. Take just anyone's word. It's your risk and opportunity. Learn of current marketing trends within industries that indicate potential opportunities or weaknesses such as price wars or huge fluctuations in raw material costs. Also, try to know how economic factors and changes in the society (e.g. aging population) could potentially stimulate or affect any specific industry. I do not care if Uncle Sal once owned "one of these." No he didn't and you are not Uncle Sal. Keep it objective!

5. Settle. Get the business that will provide you with the level of satisfaction you desire. The business you want may be a compromise from your passion but ultimately will satisfy your needs both professionally, personally and financially.

If you are looking for a business and franchising is a good place to start, I hope you find this general information of interest. My firm works with a number of franchises and profiles and reviews candidates on a daily basis that we present to them. Give me a call and let me know if Wilson Associates can be of service to you individually.

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

As a small business owner, you know how difficult it can be to compete for one of the ten hot spots on the first page in search engine rankings. Large companies have the resources, traffic and inbound links to be recognized as trusted and therefore rank higher. Long tail keywords with geographic targets is a great way to get started in the local search however we know that keywords/on page SEO only accounts for roughly 25% of the ranking process. Local searches have become increasingly popular as when people begin their search, many are looking to weed out the large companies and seek local businesses. Creating and/or claiming your business on the local directories in conjunction with long tail geographic keywords will improve your local rankings. With so many to choose from, which ones are best?

While it is inviting to create or claim your business on every directory, this can be counterproductive as these sites rank very high and will push your actual site to the 2nd or even 3rd page. The following is the top sites to create your local business listing.

5 Top Local Directories

1. Google Local. This I find to be the best as you are required to have a Google user account however once you create and then create your listing, it provides statistics such as impressions, actions (# of driving directions requested, #of clicks to your website). Listings are set up quickly and an automated call is placed to verify your information through a pin that they send.

2. Yahoo Local. As with Google local, you do need a Yahoo account to set up your company. They will verify the information via review of a human as they term this and once verified, the listing is submitted.

3. Bing/MSN. Quite similar to Google and Yahoo however despite reading that you can verify via telephone, I am set up to receive a postcard with a pin number on it.

4. Yellowpages.com. Free listings tend to get lost on their site as paid listings will rank higher for each category but on the search engines, your site will be recognized and rank well on the search engines.

5. LinkedIn. Creating a company page further enhances your rankings on the search engines. Traffic to the site may not be the most abundant but it is another way to rank.

These are the top online directories. Others such as Superpages and Kudzu will increase your rankings on search engines as well. If you are unsure and want to add your company listing to additional sites, be sure to do a search on them to see if others have provided feedback. This will help to determine if their site is the right place for your company.

Be sure to be consistent with your company description as many times your listings will appear one after another on searches and it can be confusing if you promote different parts of your business on each site.

Any additional directories that have worked for you? Ring me up and let me know!

Owning a franchise doesn't qualify you as a better entrepreneur. What might be the things that provide you with the right foundations to succeed in your business and other businesses in the future?


A good friend and franchiser that I know told me recently, "John, we're in the business of finding already qualified franchisee's or successful multi-unit business owners and putting them into our business. You'd be doing us and them a favor if you could point out the things that create the best-looking franchisee's; someone we and other development franchises and Master Licensee's would be attracted to.

This is my first attempt at it. It is based on my years as a Covey Certified Trainer. That training, though somewhat faded through the years has always stuck with me. I've found that a person can rarely handle more than 5 or 6, maybe 7 steps in a process or strategy (though many are broken down into many further subsets it is a great place to create top of mind memory). Besides, if most franchisee's would get just 2 or 3 of these right they'd improve their business 100 fold.

The second component of this was my own personal experience and hundreds of hours of discussion with other multi-unit and area development franchisee's as well as a few Master Licensee's. Their revelations as they moved along the maturity continuum has been revelatory.

1. Create and nurture a positive relationship with the franchiser.

The fact is that a franchisee only benefits from the relationship with their franchise company if they realize it is symbiotic and fraternal. You got into this for your definition of "the long haul," and they brought you into their system in the hopes that you would be a value to the brand. Start with realizing that creating unity will serve your personal purposes more fully than constantly driving wedges between the two of you.

2. Walk in their moccasins a few miles on a regular basis.

It is natural when things are not going our way to aim our scorn and criticism at the big target, the franchise company. But, you need to be mature enough, bright enough, and for the sake of point 1, intelligent enough to realize understanding their position and perspective will help feed the mutual benefit paradox more than simply aggravating them and your own nervous system by another trip to the "whine" bar.

In the midst of pressure I've often watched as franchisee's revert to a completely and fully non-tenable position, "Franchiser YOU got me into this! YOU fix my problem." No! First, no matter what, just like you don't want the government owning companies or running health care (and NO! You don't if you ever want a car that runs or not have to wait 6 months to get into the doctors office!) you do not want to be even more beholden to your franchiser. Secondly, it's your business! You are in business for YOURSELF just not by yourself. They system works best when the franchiser coaches and not acts as partner/operator with you. Every franchise should have a huge sign at the entry of their business opportunity, "No Childish behavior tolerated!" Act as an independent business person and be proactive relating to your business issues.

3. Use the benchmark tools your franchise system provides - benchmark against success and NOT failure!.

If you are in trouble you do not need to be comparing yourself to the other losers in your system or similar systems. Spending time on BlueMuaMua.com doesn't help your situation. Review your systems successes regularly. Check with them to determine what action steps they've taken in order to ensure their successes. Adapt winning business strategies to fit your businesses needs.

4. Take every opportunity to be involved in your franchises gatherings, conventions, meetings and training's.

Commit to being a part of discovery and mentoring in your franchise system. There is always someone who needs your help (not your whiney) and there are always great business solutions shared or available in meetings. Take copious notes. Ask for clarification. Redundantly resound all those aspects of the meeting that touched off positive thinking processes within you and blow off the negative. Take the high ground and use it to your advantage.

5. Be a source for affirmation and solutions - Eventually you will need to offer your skills and talents to your franchise system

Look, it's obvious that a new franchisee enters their system more needy at the start. That's to be expected. But you should also come into the system realizing, (again) this is YOUR business - YOU open the doors every day - YOU pay the bills (everyday) - YOU hire and fire and YOU benefit from the quality of your ability to absorb solutions. for the franchisor’s support. Ultimately, (here is a lesson in walking in their moccasins) the franchise companies prays your involvement in the system makes the system that much better. That takes your involvement. It takes you moving from diapers (deep needs assistance) through training pants (I can walk and feed myself thank you) to maturity. The goal is maturity.

6. Be a systems based franchisee and not a talent pool slave.

Most franchises have employees (though, admittedly, not all) And, though you hire for success, never abdicate the success of your business to the people within it. Franchising sets itself apart, regardless the market, product or service offered by the franchise system. Revert back to that system, which includes employee, human resource and management policies and make sure that the system is adhered to in the face of pressures by the individuals to change the business. Often sadly, people will come and go in your business. The business itself must live and thrive! Stay the course of the business system.

7. Be a positive and shining light in the community where your businesses live.

Your business, and its physical presence should create warmth and a smile to the residents of that area. What do you do in order to win their hearts? What are their concerns? How do you marry your business to their interests; their work; their families and their success as a community? You want better employees? Be viewed as a place where good attitudes, good responses, good works and deeds and good things (to be interpreted as things I as a member of this community value) happen. Find time to sponsor, to donate and not just money and things but make sure that your face and that of your employee team, even your personal family are given to do good things.

You wish to be in control of your business? I want that for you. You want to grow? You should! You want to be viewed as successful? Then take positive, affirming steps. Listen, Learn, Ascribe yourself to those who are successful. Take control by acting like the owner of your franchise business. Take responsibility for it's successes and figure out how you can prevent going back through failure again. Hopefully these 7 things will give you a basis for that success. - impacting your own franchise units, the franchisor, and other franchisees is a sure-fire strategy for your current and future successes.

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

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