Franchisor and franchisee relationship issues marriage

5 Keys to a Strong Franchisee/Franchisor Relationship |

Here are issues to evaluate when studying any franchise. franchisor franchisee relationships one must first accept that franchising is not a marriage. Instead. Franchising World, April If the culture fits both parties, and if both parties are What makes a marriage last for 50 years or “until death do you part? come with owning one's own business are also balanced with challenges and risks. Though the importance of good franchisor–franchisee relations have channel conflicts, it does not address wider relational exchange issues. the relationship marketing literature have used a marriage analogy (Dwyer.

Traditional lifecycle theory sees relationships proceeding through a sequence of phases Dwyer et al.

  • Franchisor Franchisee Relationships
  • Franchisor And Franchisee: The Importance Of A Strong Relationship

Following traditional lifecycle theory, after the first experiences between the parties in the initial relationship phase, relational variables, such as cooperation and dependence, are assessed more favorably over time.

As the relationship matures, the ties between partners strengthen, thus increasing their interdependence Blut et al. However, Blut et al. These researchers, in contrast to the life cycle theory, suggest that relational constructs in the franchise context may follow a U-shaped curve over time, with a "honeymoon" initial phase, following stages of "routine," "crossroads," and "stabilization.

Therefore, following the perspective of Blut et al. The relationship between relationship quality and time follows a U-shaped curve, which is high in the first and fourth phase, and low in the second and third phase.

franchisor and franchisee relationship issues marriage

The relationship between financial performance and time follows a U-shaped curve, which is high in the first and fourth phase, and low in the second and third phase.

In fact, only the moderating role of relationship time in the effects of trust and commitment on satisfaction and the intention to continue a relationship were tested by Victoria Bordonaba-Juste and Polo-Redondobut the moderating role of time on the effect of relational variables, such as relationship quality, on financial performance is still unexplored. In longer relationships, parties benefit from mutual experience and variables, such as trust, commitment, communication, and cooperation.

Over time, bonds become stronger and the relationship closer Athanasopoulou, Therefore, during the lifetime of a relationship, relational variables, such as relationship quality, should receive better assessments, as well as financial performance evaluations, by partners in long-term relationships than in short-term ones.

Forging an effective franchisor-franchisee relationship

From this point of view, the following hypothesis is also tested: The effect of relationship quality on financial performance is stronger in long-term relationships than in short-term ones. These franchisors provided the researcher with a list of franchisee stores and their e-mail addresses.

The questionnaire was tested and revised prior to general administration. In total, franchisees were invited to participate in an on line survey. To encourage participation, we emphasized the premise of confidentiality, as franchisors would only have access to aggregate data. A total of usable surveys were obtained, representing a response rate of To reinforce confidentiality, responses were obtained in an anonymous fashion. Examination of sample characteristics indicates that females represent There is no significant difference among the franchisees' profile of the three franchise networks.

The franchisor will not jeopardize the greater good of the entire franchise system to see one franchisee succeed, especially if that franchisee is on a path that does not adhere to the one laid out by the franchisor. This is where the parent-child or marriage analogy falls apart; each franchisee is an independent business owner.

franchisor and franchisee relationship issues marriage

If each side does its part, the relationship can be a long and healthy one, and can even take the franchise owner from a single-unit owner to multi-unit powerhouse. Do Your Research Well This happens on both sides of the franchising equation. Franchisors are going to thoroughly research every serious prospective franchisee.

5 Keys to a Strong Franchisee/Franchisor Relationship

They will scrutinize personal and financial backgrounds. In many cases, depending on the size of the franchise network, there will be in-person meetings at the regional level and with a team from headquarters. For franchisees, it is important to research as much about the franchise opportunity as possible: So, where is it? First, there has to be fairness and an expectation of reward for both parties.

Second, franchisees enjoy certain legal and operational rights but must conform to maintain them.


Franchising works best when participants understand and fulfill their roles. The real similarity between franchisors and franchisees is they are both in the business of repetition. Franchisors repeat the sale and installation of their system and franchisees repeat its use. Franchising, like every other business, is a production machine reacting to supply, demand and technology.

When that machine is working as it should the result is good franchisor franchisee relationships. The most fair and equitable relationships exist when franchisors install their system as promised and franchisees execute it as promised.

Lack of it will almost guarantee bad franchisor franchisee relationships down the road. The rush to enter a franchise agreement by either party represents bad business and a lack of common sense.

franchisor and franchisee relationship issues marriage