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Entrepreneur Success # Franchising


Element # Understanding The Franchisor/Franchisee Relationship


Conflict seldom goes away by ignoring it. The franchisee will only move to the SEE stage through some frank and open discussions with the franchisor.


The SEE Stage- Dissatisfaction level drops- Finding Benefits in Interdependence


Franchisees see that the franchisor does add value to the process and realise that they would have to do all the groundwork that the franchisor does. It does require more of a confrontational approach, which gets franchisees to move faster out of that stage and move them to the satisfaction stage.


Franchisees understand the importance of following the system, having a shared standard and having access to support services- all of those, which give the franchise a competitive edge.


As franchisees review the value and benefits of the system, a renewed conviction will often emerge that the system is a good one and does work. They may become more open-minded, inquisitive and empathetic.'


At this stage, franchisee need to be listened to with a commitment to helping increase their profitability


The WE Stage: Return to higher satisfaction levels- Looking for Evangelists


Franchisees understand that they need to work with the franchisor to make the most of the business.


To reach the WE stage, the franchisee must be mature, objective, commercially minded and, most of all, they must be profitable. The franchisor, on the other hand, must be patient, fair and consistent in their dealings with franchisees. With the new recognition of interdependence is likely to come a re-commitment by the franchisor to the franchisee.


The real power of franchising kicks in here...


If you recognize the danger zone, you need to come back and resell- Don’t be complacent. Always continue to work on the relationship. The quicker they get out of the dangerous stage, the stronger they’ll become your strongest advocates.


There are opportunities for franchisees that have been in the system for a while. It is normal for some of them to get bored with what they do. It may be worthwhile to get those franchisees to help and mentor other franchisees.


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