Your franchise relationship shouldn’t be looked at as a transaction. It's a partnership that can make or break your success as a franchisee.
Regardless, a lot of new franchisees get this wrong from day one.
How? They approach their franchisor like a vendor or, worse, an adversary. That mindset costs money, creates friction, and limits growth potential.
That being said, here's what closet to 25 years in franchising has taught me: The strongest franchise operators treat their franchisor relationship like a strategic alliance. Because that's exactly what it is.
In this post, I’m going to show you three concrete steps you can take to build a franchise partnership that drives mutual success.
3 Steps in Building a Strong Franchisor-Franchisee Relationship - Step 1: Establish clear communication channels with your franchisor early and don't wait for problems to reach out to headquarters. - Step 2: Embrace the system to leverage what has shown to already work. Then, become a strategic partner in the evolution of the franchise system. - Step 3: Invest in your mutual success by thinking beyond you and your unit(s). Participate actively in franchise councils and advisory boards. - Bottom Line: Communicate consistently and clearly. |
Step 1: Establish Clear Communication Channels Early
Communication isn't just important. It's foundational.
Before signing your franchise agreement, map out how communication will flow. Who's your primary contact? What's the escalation path for urgent issues you encounter? How often will you connect?
Make a commitment to set up regular check-ins. Monthly calls work for most franchise systems. Weekly touchpoints make sense during your launch phase. But the frequency matters less than the consistency.
And don't wait for problems to reach out to headquarters. Share wins. Report challenges early. Ask questions before small issues become major headaches.
Here's a framework that works:
- Operational questions: Your franchise business consultant
- Marketing support: Corporate marketing team
- Financial concerns: Your franchise development contact
- Strategic growth: Regional director or VP
Be sure to document everything. Keep records of advice received, decisions made, and commitments from both sides. This isn't about building a legal case. It's about creating clarity and accountability. Bottom line?
The best franchise partners I've worked with treat communication like a business discipline, not an afterthought.
Step 2: Embrace the System While Adding Strategic Value
Your franchisor has spent years developing their business model. Respect that investment.
For starters, follow the system. Use their proven processes. Implement their marketing strategies. This isn't about blind obedience. It's about leveraging what has shown to already works.
But here's the nuance: Great franchisors want and encourage feedback from the field.
Why? Because you're seeing customer reactions they can't see from corporate headquarters. You're identifying operational inefficiencies they need to know about. And you're testing their systems in real market conditions.
Important: Share your insights constructively. Frame feedback as opportunities, not complaints. Bring data, not emotions. Suggest solutions alongside problems.
Consider this approach:
"I've noticed customers asking for X. Here's the revenue potential I'm seeing."
"This process takes way longer than projected. Would the system benefit from this modification?"
"Three competitors in my market are doing Y. Should we explore this?"
Smart franchisors cultivate innovation from their franchise network. Position yourself as a contributor to system improvement, not just a system follower.
In short, master the fundamentals first. Then become a strategic partner in system evolution.
Step 3: Invest in Your Mutual Success
Your franchisor's success is your success. Your growth helps them grow. And the best franchise companies know this.
This seems obvious, but too many franchisees work with a scarcity mindset. They view every fee as money leaving their pocket rather than investment in shared infrastructure.
One thing you can do on your end is participate actively in franchise councils and advisory boards. These platforms give you direct input into system decisions. They also connect you with successful operators who've solved the problems you're facing.
Next, attend their franchise conventions. Yes, even when you're busy. These events deliver ROI through networking, training, and relationship building with corporate leadership.
Another thing I encourage you to do is to support system-wide initiatives. National marketing campaigns help your location. New technology rollouts improve your operations. Cooperative purchasing programs reduce your costs.
Finally, think beyond your unit or units. Refer qualified franchise candidates. Share best practices with struggling operators. If possible, contribute to system knowledge bases.
More often than not, the franchisees I've seen achieve extraordinary success treat their franchisor relationship as a long-term investment, not a short-term expense.
The All-Important Partnership Mindset
Building a strong franchisor-franchisee relationship requires intentionality.
Communicate consistently. Follow the system while adding value. Invest in mutual success.
These aren't complex strategies. They're fundamental business practices that most franchisees overlook in their focus on daily operations.
And while your franchise agreement creates a legal relationship, remember that sustained success as a franchisee requires something deeper.
I’m talking about a genuine partnership built on trust, communication, and shared commitment to excellence.
Start implementing these three relationship building steps as soon as possible. Your long-term success as a franchisee depends on it.
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This post was written by The Franchise King®, Joel Libava. He is the author of two books on how to buy and how to research a franchise and advises people looking to make a smart decision on a franchise to own.