Franchise Relationship


Franchise Relationship - iREAP POS Article

In a seminar I held on ‘Franchise Your Business,’ several participants asked ‘How to choose a good Franchisor.’ Some participants expressed frustration because they had become a Franchisee of one of the brands but did not get good support from the Franchisor.

In Indonesia, there are still many incidents of Franchisor conflict with franchisees. Many things cause this, including differences in expectations, unclear rights and obligations, a brand that is not managed correctly, and many other reasons.

Franchisor and Franchisee must be on the same ‘frequency/wave’ when starting a collaboration so that there will be no disappointment from each party in the future.

Dear readers, in this article, I would like to say that a Franchise System collaboration must begin with an intention to HELP MUTUALLY in the pattern of Symbiosis Mutualism (mutually beneficial cooperation between one party and another).

If this principle is violated, the end is apparent. Namely, a dispute until the end of the cooperation is not reasonable, resulting in the loss of all parties.

What Franchisors and Franchisees Must Understand

Several things must be understood between the Franchisor and the Franchisee so that a collaboration that starts well does not end in conflict:

Don’t just sell it | Origin Buy

The Franchisor cannot just sell, meaning that the Franchisor must sell the franchise system to the right Franchisee. Not all prospective franchisees are suitable for the business offered by the Franchisor.

For this reason, the Franchisor must have clear recruitment standards to avoid making the wrong choice. Likewise, from the Franchisee’s perspective, ‘don’t just buy, which means that the Franchisee must know correctly – whether the product to be purchased from the Franchisor is by what he wants and his abilities.

Study Properly the Rights & Responsibilities of Each Party

Both the franchisor and the Franchisee must understand their respective rights and obligations. Thus, when the collaboration begins, there are no things that are still unclear. This will make future collaborations easier.

Many franchisors still cover up things franchisees should know to sell their products. Franchisees are sometimes dishonest with their situation, so they cannot fulfill their obligations.

Attitude of Mutual Help for Mutual Success

Franchisor and Franchisee must work hand in hand for mutual success. Franchisors must have principles to make their franchisees successful. If the Franchisee is successful, the franchisor will be more successful.

The Franchisee must also help the franchisor to maintain the brand image of the product so that the customer well perceives it.

Good Communication & Coordination

All problems usually start from poor communication. Communication is not accessible, for all parties must have a particular time to interact with sufficient time to talk about the events experienced when the business started running.

Better communication will make coordination run better because all parties have interacted and built a relationship.

Dear readers, the four things I have mentioned above must be done by all parties for mutual success.

The franchisor must regard the Franchisee as a ‘main customer who must be served well’ so that they feel satisfied and want to work together longer.

The Franchisee must also run the system created by the franchisor because he believes that the franchisor will help bring him success.

It would be wonderful if the Franchisor and Franchisee could establish an ideal partnership with a perfect RELATIONSHIP. Hopefully, this can happen to all of your businesses.


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