Making Franchise Relationships Work

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 franchisee's 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 hinging on every word your date said?). 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 don't 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 bank's loan committee, which happened to review his line of credit around that same time, lowered his LOC by 50%. This was a huge issue that had not been brought up yet, and given the cash flow impact, it would certainly limit this franchisee's ability to pre-load expenses or fund capital improvements without being resolved.

It was a good thing I asked; its happened to other individuals I've 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.