Franchisees need equal status partnering

'Equal status partnering' refers to a way of collaborating and building relationships on a foundation of win-win. You win, we win. We win, you win. A typical franchisee/franchisor relationship is a business partnership where both parties benefit. It should be enshrined in all agreements and procedures because in franchising, as in business, there are many aspects that contribute to ensuring consistency and success.

A healthy relationship needs to be constantly worked at by both sides. It requires many types of interactions and agreements. The contracts and legalities serve to create structure and frameworks. Both parties need to fully understand them and to keep their end of the agreement. However, good franchises understand the business environment is a dynamic one so within its structures there is scope for discussion and debate.

Mutual understanding

For the franchise relationship to work, both parties must understand their respective roles and adhere to them. In this regard, maintaining a balance between the rights and responsibilities of both parties is key. Problems are bound to arise if either party to the franchise relationship tries to usurp the other's role. The biggest mistake a franchisor can make is to take the franchisee for granted. This is not a relationship built on a massive legal document, with one or two face-to-face meetings a year. One should aim to spend much time interacting with franchisees at a personal level - focusing on the right issues at the right time.

In exchange, franchisees must be passionate about the brand and embrace the culture fully. They represent the brand in their area and are expected to do so with pride. Yes, franchisees are expected to adhere to operating guidelines 100% but are also encouraged to contribute to a dynamic and ongoing debate and to help shape the future.

Research key to investment, growth

Before deciding on what franchise is best, we urge prospective franchisees to study all the brands they are considering buying into both from a feasibility perspective as well as from a chemistry perspective. Potential franchisees should chat to existing franchisees and a good franchise will invite anyone interested to spend some time at its company head office to get a feel for 'culture fit'.

This formula was worked well for our company for 18 years but we recognise it may not work at all 10 years from now. This is why it constantly works on developing its concept in close collaboration with franchisees. To maintain a leadership position, one must continue to look for different ways to do the same thing better. It is important to note that many of the changes we have implemented were initiated by franchisees, particularly as regards the menu.

Maybe we cannot see 10 years into the future, but one thing we can predict with confidence is that in 10 years a successful franchise is still a win-win business.