Establishing a strong, healthy franchisee-franchisor relationship is one of the most important keys to the success of both parties. Franchise Expert Derek Cafferata shares his thoughts on this key relationship.

A franchise business, where the franchisor seeks out suitable people to help expand the brand by granting a franchisee the rights to open the business and establish in a new location, is one of the most common business models in the United States.

Thousands of franchise opportunities are available, with the potential for financial and career reward. But they do not guarantee business success. Not all are a good buy and not all will be the right fit for you.

Which is where franchising expert, Derek Cafferata, has been able to help a vast number of budding entrepreneurs make their dream of owning their own franchise a reality. As President and CEO of All State Franchise Finders, Derek brings with him more than 30 years’ experience in the franchising industry both throughout the United States and around the world.

The Franchisee-Franchisor Relationship

When you choose to go into business within the franchise framework, as opposed to going into a start-up business for yourself, probably the most significant difference is that you will find yourself in the franchisee-franchisor business relationship.

“If this relationship is open, honest and clearly defined, then both parties are on the right path to success,” says Derek. Which is why the franchisee-franchisor relationship is so vital.”

The best franchisee-franchisor relationship is one that is symbiotic, where both parties mutually benefit from each other. Each party needs to understand that, in order to succeed, both need to succeed.

The Benefits of this Relationship

Derek believes there are some key benefits to a healthy franchisee-franchisor relationship.

“Firstly, a good relationship between franchisee and franchisor will result in a strong connection between both parties,” says Derek. “Good communication fosters success.”

Clear and open communication leads to increased support to the franchisee, helps to enable fast and effective resolution of problems or disputes that may arise and can often foster a mutually beneficial mentoring-type relationship between franchisor and franchisee. The more supported, trained and well-prepared the franchisee, the more successful their business is likely to be. And the more successful each franchisee, the more successful the franchise is overall.

A second benefit to a healthy franchisee-franchisor relationship is that it opens up opportunity for the franchise to improve and evolve.

According to Derek, a business that is always looking for ways to improve and evolve is more likely to stay ahead of its competition. While the franchisor is responsible for overall business systems, policies and procedures, training and research and development, franchisees are usually the best people to seek feedback from. A franchisor who is keen to hear constructive feedback from each franchisee, is better able to understand the target market, initiate changes as necessary and keep ahead of the competition. And a business that can quickly and efficiently adapt to customer needs will naturally attract more and more customers.

Another great benefit to a healthy franchisee-franchisor relationship is increased brand awareness. A business that offers its customers the best buyer experience will increase market share through reputation. A franchisor who fosters a strong and healthy relationship with each franchisee is going to give each franchise the best opportunity for success. And the more successful each franchise location, the greater the influence and effectiveness of overall brand awareness of the company as a whole.

Franchise Experts All State Franchise Finders

Franchising offers so many benefits for those looking to become business owners and it is the best way to grow a business locally, nationally and internationally. The franchisee-franchisor relationship is a key aspect for the success, or failure, of any franchise business.

If you need advice on how to restructure your franchise business, contact ASFF your franchise experts. Derek Cafferata and his team have the knowledge and experience to help you reach your franchising goals. Contact ASFF on 1-800-544-2161 or visit allstateff.com today.