America's #1 Franchise Directory, Trusted for Over 15 Years

How To Improve Franchisor-Franchisee Relations

It’s easy for franchisors and franchisees to find business advice in magazines or on the internet. It’s the good advice that can make or save a business that’s truly hard to come by.

Dennis Monroe, a partner in Krass Monroe, PA, a Minneapolis law-firm that specializes in multi-unit franchise finance, mergers and acquisitions, and taxation, has an insightful column in March’s edition of Franchise Times magazine. Monroe writes candidly about the testy nature of the franchisor-franchisee relationship. For the sake of both parties, Monroe urges that both sides have a very clear understanding of where the franchise is going so that no one is under any illusions when there are bumps on the road.

Dennis’s first two sentences are interesting:

“In today’s fluid and volatile franchise world, it is imperative that a franchise system knows itself and where it’s going. As I have discovered in my representation of many franchisors and franchisees, it is a rare franchisor that has a good understanding of its franchisees’ financial positions.”

Now Dennis goes on to outline why the situation is like this. But his real interest in writing this column is to highlight the steps franchisors and franchisees can take together to make daily business function smoothly. The better both sides understand each other, the better off everyone will be in the end.

He goes on to outline six areas that franchisors and franchisees can focus on to improve transparency:

  • Balance Sheet
  • Franchisee Questionnaire
  • Corporate Structure
  • Lenders
  • Landlords Positions
  • Supplier and current accounts payables

We urge both franchisors and franchisees to read the article. Following Dennis's advice can only help to make a franchise run better.

comments powered by Disqus

Your Request List

You can add items by clicking the "Add to Request List" button or checkbox when you find something you're interested in.

You may add up to 15 items to your Request List

Your request list will follow you around the site.

When you are ready to complete your request for free information, click "Submit" in your Request List.

Why not get started by browsing our New Franchise Opportunities or Low Cost Franchise Directory?

You may only enter 15 items in your Request List.

To request information from your selected companies, just fill in the form and click "Submit".

OK, got it

Request Info From:


Your List is Empty

You can add items by checking the "Request FREE Info" boxes.

* indicates required field

Optional Information

Join our mailing list!

We share your information only with your selected franchises.