Establishing and Maintaining an Effective Franchise Relationship: It All Begins with Establishing a Corporate Culture of Respect and Commitment (FW FOCUS: FRANCHISE RELATIONS 101‪)‬

Positive, trusting relationships between franchisors and franchisees are the foundation of healthy franchise systems. The basis of the franchise relationship is the license that allows the franchisee to use the franchisor's trademark and systems in exchange for initial and ongoing fees. It is an opportunity to grow the franchise network and brand utilizing the franchisee's capital and hard work; in exchange, the franchisee retains the profits from the enterprise. However, those franchise companies with the best franchise relationships view the relationship differently: they view franchising as a strategic and interdependent relationship founded on trust where the key objective is to fulfill the goals of both the franchisor and franchisees. For the franchisor to be successful, its franchisees need to be successful; the bottom line is that the franchisees need to make a reasonable income. For franchisees to be successful, the franchisor needs to be successful. It's impossible to have one without the other.