Article
Why relationship building is critical for a successful franchise
Whether you're a franchisor or a franchisee there is one big common aspect tied to everyone's success: a supportive, collaborative, trusting relationship.
June 27, 2016 by Judy Mottl — Editor, RetailCustomerExperience.com & DigitalSignageToday.com
Whether you're a franchisor or a franchisee there is one big common aspect tied to everyone's success: a supportive, collaborative, trusting relationship.
If that's not in place success can easily slip through a franchisee's fingers and cast a black mark on a franchise brand — something no franchisor wants.
The goal is building a strong relationship that benefits both, drives success for both and leads to growth for both.
But it's often not easy and it takes work, according to David E. Hood, president, iFranchise Group, a consulting firm offering franchise development and business planning. Hood spoke about how franchisees and franchisors can maximize their relationship during a session at International Franchise Expo held at the Javits Center in New York City in mid-June.
"It's [the relationship] an important part of your success," said Hood, who directed the franchised expansion of Auntie Anne's Soft Pretzels. During his leadership era the company grew from a start-up concept to an international system boasting 640 domestic and more than 100 international retail locations, 320 corporate employees, and system-wide sales of over $200 million. Hood also serves as a partner and board member of Franchise Dynamics, LLC, a premier franchise sales outsourcing firm.
The more support and help a franchisor provides to a franchisee the greater the reward since that will ultimately result in a shorter ramp-up time and thus faster route to deeper profits for the franchisee, he explained.
Noting there are many reasons a franchisee can fail, from lack of capital to poor employee management, the lack of franchisor support, inconsistent evaluations and a weak relationship with the franchisor are prime failure drivers.
"Relationship is so critical to your growth," said Hood, noting good relationships will get off to a solid start if the franchisee shares common goals with the franchisor, including a passion for the business, a clear vision and a goal to succeed.
The better the relationship the greater number of benefits, said Hood, including greater sales, respect, engagement with customers, commitment to growth and franchise expansion.
The franchisor, said Hood, must lead by example in providing good support and anticipating the franchisee's needs through training and field site visits.
"You need to be transparent and, when doing initiatives like a new product, involve the franchisee," he advised.
About Judy Mottl
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