How Are Franchise Relationships Managed?


We all wonder what kind of relationship franchisor and franchisee share. Is it like employer and employee? No! For sure the franchisor associates with a franchisee of his/her choice. But, a franchisee cannot be considered as someone who works as an employee. In a franchise business, a franchisee is their own boss. However, they are not equal to their franchisor as well. Both the parties play distinct roles and responsibilities. Basically, they share a professional relationship where the franchisor is an effective leader. Also, they delegate powers and authorities to their franchisee. There is a degree of interdependence. Franchisor and franchisee both need each other when it comes to growth and expansion of business. Therefore, they need to maintain cordial relations with each other to make a thriving franchise business. 

Remember you need to keep your nose to the grindstone while running a franchise business. Working as a franchisor is not everyone’s cup of tea. First, you need to plump for franchisees who have in-depth knowledge of running a business. Also, you need to train and educate them regularly. For instance: If you want to flourish your education business, then it is essential to tell your franchisees about neoteric teaching skills. It can aid in improving the work structure of the education franchise. Also, you need to keep ample things in mind while running a franchise. In this article, we have mentioned some important things you need to keep in your mind. It can actually help you in maintaining an amicable relationship with your franchisor. 

Here are some of the relationship management tips you can adhere to as a franchisor:

Note that you can’t make your franchise business successful, if you have sour relations with your franchisees. You need to support your franchisees regularly. It can help franchisees in thriving their business. Here are some tips you need to follow to maintain good relations with your franchisees. 

  • Give respect to your franchisees

Remember you have trusted your franchisees with your brand name and business model. They have invested in your business to make it successful. You can’t treat them like employees. They are as much of a boss as you. Therefore, you need to treat them with sheer respect and honour. Also, you need to keep a close check on the needs of your franchisees. No doubt, you are their leader. But, the role of a leader is not to dominate his/her team members. You need to coordinate with them to achieve the desirable targets. 

  • Encourage clear communication

You can nurture relationships by maintaining healthy communication. Thus, it is your responsibility to arrange regular meetings with your franchisees. Also, you need to be a good listener as well. Encourage your franchisees to share what’s running in their mind. As a leader, you need to be comfortable with the opinions of other people. This is how you can devise some creative ideas for running your business. If you’ll keep on imposing your decisions on your franchisees, it can severely affect your relationship with them. So, have a two way communication, where you can invite some valuable suggestions from your franchisees. 

  • Regular support and guidance

As you are a leader in the business, your franchisees will always look up to you when they need support and guidance. Thus, you need to arrange regular training sessions where you can tell them some new techniques about operating a business. Also, you can ask them if they are dealing with some problems while running a business. As a franchisor, it is your responsibility to solve the problems of your franchisees. 

  • Resolve conflicts instantly

No doubt, the conflicts and disagreements can grow with time if they are unresolved. If you are willing to solve the conflicts, then you can solve it by giving mutual respect. Are there no chances of solving the problem through effective communication? If yes, then try to seek help from a mediator. Even if the issues remain unresolved, then make sure you have all the valid reasons to terminate the relationship. You would need to follow legal procedures to do so. However, never put yourself in this position. You need to do every possible effort to save your relationship with your franchisees. 

  • Care about your franchisee’s success

You need to be a well wisher of your franchisees. Remember, your franchisees are representing your brand at different locations. Their success will definitely affect your whole business. So, you need to think for the betterment of your franchisees as well. Make sure you are helping them to craft a foolproof business plan. Moreover, you need to help your franchisees to do effective marketing. Your interest in the franchisee’s business can give them a sense of belongingness. Also, it can help them establish a thriving franchise business. 

  • Track the business of your franchisees

Sometimes franchisees hesitate to share their problems with their franchisors. Thus, you need to make an effort to keep a close check on the regular business of your franchisees. So, don’t forget to ask about the monthly sales report, profit/loss balance sheet etc. You need to check the financial position of your franchisees regularly. This is how you can save them from failing. So, make sure you know the exact situation of your every franchise unit. It can give a sense of security to your franchisees. Moreover, you can easily coordinate with them. 

Do you have sufficient capital to start a franchise business? If yes, then invest in a coaching franchise. You can start earning whacking profits within a month. 


Succeeding in a franchise business is all about maintaining healthy relations with your franchisors. It can turn out to be really challenging at times. But, you can easily foster better relationships with franchisees by adhering to the afore-mentioned points. Note that your main focus should not be on linking with new franchisees but to maintain healthy relations with present ones. To manage your current network, franchisors can follow the above tips. 

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