Franchising - 5 Tips For Successful Franchisor - Franchisee Relationships

When you become a franchisor, you are the hub of the wheel and each spoke is a franchisee. How you establish and maintain your relationships with your franchisees can mean the difference between great success and dismal failure.

If you've qualified them well (see tip 1), you'll keep problems to a minimum. Either way, it pays to be proactive. Here are five ways to keep problems to a minimum in these essential relationships.

1. Find the Right Franchisees

In the rush to expand, many companies bring on franchisees that aren't a good fit. Some people with entrepreneurial stars in their eyes mistakenly believe that since a franchise is part of a large, established network running one is easy. Make sure your potential franchise owners know that a franchise, like any small business, requires long hours, lots of energy, and boatloads of patience. Being able to identify individuals with the right mix of skills, character traits and personality will save you a plenty of headaches. Remember, these people will be representing your brand.

2. Understand that You Can't Please Everyone - But You Should Try

The biggest factor in the growth of a franchise is the feedback your franchise owners give to potential franchisees. An endorsement from existing franchisees validates the business model; anything less than a strong recommendation raises doubts.

Franchisees generally come in three flavors:

• Evangelists: Company cheerleaders who throw themselves into helping the company succeed
• >Gripers:

Those who want to blame you for every problem they have and never seem to be satisfied

• >In-betweeners:

Those who are just trying to make a living and need your support 

While you'll rarely convert the Gripers to Evangelists, you can keep the In-Betweeners from growing frustrated. When profits are up, everyone is happy, of course. But even when money isn't flowing in as quickly as it should, being responsive to your franchisees will earn you their trust, respect and, ultimately, their endorsement. Steps 3-5 will help.

3. Be as Honest About Failures as You are About Successes

When a franchisee does well, throw some love their way. A little attention for a job well done reinforces effective strategies and may encourage some healthy competition between franchisees. Superstars will reach ever higher and everyone else will have a goal to work toward.

On the other hand, be honest when things don't go well. Business people can smell a cover up no matter how you package it. Dishonesty and spin weaken your credibility. If you are forthright about your shortcomings and lay out how you plan to improve them, your franchisees will respect you for it.

4. Communicate and Be Accountable

Franchisees don't mind bad news - But they hate no news. Nothing irritates a franchise owner more than calling out for help and hearing nothing but silence. Answer your phone when you can and return franchisee calls promptly. Reply to e-mails before they fall off your radar. Even if the answers to your franchisees' questions and requests aren't what they want to hear, they will appreciate that you responded quickly and honestly.

5. Us vs. Them Leads to Failure

Repeat after me: "We are on the same team."

Too often, franchisors and franchisees act like bitter political opponents rather than teammates. In the battle of Us vs. Them, nobody wins. Never lose sight of your common goal: winning customers to your brand.

By Lisa Hoffmann