What Does It Mean To Have A Liaison With Your Franchisor?

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Wednesday, May 14th, 2008 Subscribe To Our Feed

For the smooth running of a franchise system, a harmonious relationship between the franchisor and the franchisee is a must. There cannot be any argument against this point. Now, how the relationship is defined is the main question. Is it a relationship between an employer and an employee or a relationship between a senior partner and a junior partner? On the other hand, the most common relationship that a franchisor-franchisee association mirrors is said to be that between a husband and a wife. Or, does it mirror the parent-child relationship actually?

If we take these relationships as a reference point, then the relationship can be defined as a mixture of all these. Like an employer-employee, a franchisor and the person starting a franchise are bound by an agreement. But unlike them, a franchisor doesn’t pay the franchisee any money; rather it’s the other way round. Moreover, the franchisees are owners of the locations. If we consider the liaison between two partners, then some similarities are there too. For example, while taking a decision, the franchisors discuss that with their franchisees and take them into confidence while implementing changes. But if we call them partner, then at the very best they are very unequal partner, because the franchisor obviously has more power and rights regarding the running of the business.

Now, if we look at from the point of view of social relationships, the franchisor- franchisee relationship does look like that of a husband and wife sometimes. Like them, both the franchisor and the franchisee have to work as a team for the franchise system to work. But unlike them, the franchisor puts some restrictions on the franchisee (which any partner will resent in a marriage!). In that sense, the liaison is that of a parent-child, especially when franchisors have the rights to admonish any franchisee who breaks the rules of the franchise agreement! But, it’s not a relationship that is for life; most franchise agreement lasts for ten years, after which it’s up to both of them whether they want to continue it.

Hope this answers your queries regarding what it means to have a relationship with the franchisor.

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