Franchisor And Franchisee Relationship

A successful franchisor franchisee relationship is built on trust that comes from honest two way communication that allows for discussion ideally in person.

Franchisor and franchisee relationship. While it can be difficult to relinquish control to the franchisor and follow strict rules a good relationship shouldn t make it feel like the franchisee is a lowly employee. The franchisee definition is the person or entity which purchases the franchise from the franchisor. Differences between franchisor and franchisee franchisors offer and sell franchise opportunities to prospective franchisees. Phase one recruitment the franchise relationship begins when the prospective franchisee is first recruited.

That commitment more than anything else needs to permeate the franchisor. The franchisor and franchisee relationship is a vital component to the franchise business structure. But the best franchisee franchisor relationships will make it clear that the respect is mutual and that the franchisee is vital to the franchise s success. The wall street journal cites a 2009 case in which burger king was permitted by a federal district court in miami to authorize its franchisees to sell double.

During the recruitment process the franchisor s and franchisee s expectations of each other are established. Franchisee roles and responsibilities. The franchisor franchisee relationship goes through four phases. The franchisee is licensed to use both the trademark and the operating system according to the terms and conditions set forth in the franchise agreement.

Even though the franchisor franchisee legal relationship is dictated by the franchise agreement disputes can arise that may require intervention from higher legal authorities. The franchisor franchisee relationship is a dependent relationship. Both the franchisor and franchisee must fulfill their obligations under the contract. As a franchisee you have rights and obligations.

As a result a well balanced franchisor and franchisee relationship is the key to success for any franchise business. You will be acquiring the right to use the franchisor s trademarks to follow. More often than not though the franchisor and franchisee manage a long distance relationship which means less facetime. A good franchise business structure always has a well established business model.

The franchisee must know upfront according to the contract between the franchisor and franchisee if there will be fees associated with training and support. While the parent child analogy is used on occasions to describe the relationship between a franchisor and.