Expanding your business
3
min

Franchisor and franchisee: how to develop a good relationship?

Chloé Thévenet
October 21, 2024
Share this article

Want to maximize the potential of your franchise network? The first and most important step is to establish a solid relationship between franchisor and franchisee. To achieve this, it's vital to foster communication, total transparency and ongoing support to ensure the success of your collaboration. As a franchisor, your role is not just to provide a concept, but also to accompany your franchisee every step of the way, from training to day-to-day management. Discover our practical tips for building a lasting relationship between franchisor and franchisee.

‍

Clearly defined roles and responsibilities

Franchisor and franchisee, the two key players in the franchise model, play distinct but complementary roles. Their relationship is based on a contractual partnership, with specific rights and obligations.

  • The franchisor : owns the brand, the concept and the know-how, which he passes on to the franchisee. The franchisor's main role is to guarantee the network's continuity, by ensuring uniform quality standards and providing support to franchisees.
  • The franchisee: This is an entrepreneur who exploits the franchisor's concept in return for an entry fee and royalties. They apply the franchisor's processes and methods to ensure the success of their local outlet.

The franchisor's obligations :

  • Providing know-how,
  • Ongoing training,
  • Support the franchisee's development,
  • Ensure network consistency.

The franchisee's obligations :

  • Respect franchise standards,
  • Apply the know-how you've learned,
  • Pay royalties to the franchisor,
  • Participate in network development initiatives.

Their common expectations: According to the Fédération Française de la Franchise, in the document Qualité de la relation franchise et performance (2021), the relationship between franchisor and franchisee is based on a legally defined contractual framework, supported by regular communication and exchanges based on trust, all of which are essential to ensure the network's performance and longevity.

‍

Why is a good franchisor-franchisee relationship essential?

The quality of the franchisor-franchisee relationship is crucial to the network's longevity and success. According to the 14th edition of Banque Populaire's annual franchise survey, in partnership with the French Franchise Federation (FFF), 64% of franchisors declare that the relationship between franchisor and franchisee is an essential factor in the successful development of the network. 

A solid relationship between franchisors and franchisees guarantees several advantages:

  • Improved outlet performance: a well-coached, trained and supported franchisee applies the franchisor's methods and standards more effectively, which translates into higher sales.
  • Increased customer satisfaction: the continuity and uniformity of the customer experience across all points of sale strengthens consumer confidence and loyalty.
  • Stability and development of the network: by maintaining a good relationship, the franchisor limits departures and creates an atmosphere of collaboration and solidarity within the network.

👉 To find out more: How to effectively develop your fast-food franchise network

‍

How to communicate effectively?

Transparency and regular exchanges

Transparency and communication are essential right from the start. It's essential for both parties to communicate clearly and regularly, right from the initial discussions before signing the contract. As a franchisor, providing precise answers to the future franchisee's questions, and maintaining this transparency throughout the contract , contributes to a relationship of trust.

The franchisee, for his part, must commit to applying the concept faithfully, while being able to make adjustments if necessary. This coordination ensures a successful collaboration, reinforcing the solidity of the network and the success of the franchise.

Continuing Education

The franchisor is obliged to train the franchisee to ensure compliance with the brand's standards. This training is essential to ensure the smooth running of the business. According to Banque Populaire's annual franchise survey, nearly 80% of franchisees say they were accompanied for ten days or so when they opened their outlet, which they consider to have been essential support in avoiding initial mistakes and consolidating the franchisee's skills. 

Thereafter, it's a good idea to offer regular refresher and additional training courses, to adapt to market developments or new products.

Developing good relations with franchisees

‍

Focus on the key role of network coordinators

Network coordinators play a key role in supporting franchisees. They act as a link between head office and sales outlets. According to the survey, 73% of franchisees consider their role essential to the smooth running of the relationship with the franchisor. Thanks to their regular visits, they provide advice, point out difficulties and share best practices observed elsewhere in the network.

👉 To find out more: The job of a restaurant franchise network coordinator

‍

Digital tools to enhance the franchisor-franchisee relationship

Digital solutions are key to strengthening the relationship between franchisor and franchisee. Thanks to tools such as performance monitoring systems via a backofficefranchisees benefit fromsimplified day-to-day management.

For their part, franchisors can access figures and data from the various outlets in real time. Abdullah, NBK Franchise Development Director, explains: " I can create my menu and duplicate it easily in all my outlets. And in an instant, all the restaurants can have it on their till, on their kiosk, on their Click & Collect. "

👉 Read Abdullah's testimonial

‍

The quality of the franchisor-franchisee relationship is crucial to the success and long-term development of a franchise. Good understanding, transparent communication and the right tools optimize this relationship. Innovorder, a leader in digital transformation for restaurateurs, offers high-performance digital solutions that enable franchisees to monitor their indicators in real time, while facilitating the customer experience, thus contributing to the overall success of the network.

-

Are you running a franchise and looking for a partner to help you digitalize your establishments? Innovorder is the only player in France to offer a complete ecosystem: order-taking, collection, preparation, delivery and management!

👉 Discover our offer for franchises

Updated on

Contact an expert
Make an appointment
Share this article
You may be interested in these articles
Subscribe to our newsletter.
Join our Product & Marketing newsletter, we will send you relevant news every month.