Franchise Relationship - iREAP POS Article

Franchise Relationship - iREAP POS Article
In a seminar I held about ‘Franchise Your Business’, some participants asked ‘How to choose a good Franchisor’. There are also participants who expressed irritation for being one of the Franchisee brand, but did not get good support from Franchisor.

In Indonesia, there are still many Franchisor conflict events with Franchisee. Many things cause it, among others: differences in expectations, unclear rights and obligations, brands that are not managed properly, and many other reasons. Franchisor and franchisee must be in the same ‘frequency / wave’ when it started its cooperation so that in the future there are no disappointments from each party.

Readers, in this article, I would like to say that a partnership Franchise Systems must be preceded by an intention to HELP EACH OTHER in Mutualism Symbiosis pattern (of mutually beneficial cooperation between the parties one by the other party). If this principle is violated, then the end is very clear that the dispute until the end of cooperation is not good – which resulted in the loss of all parties.

There are several things that must be understood between Franchisors and Franchisee parties so that a well-begun cooperation does not end with conflict:

  • Do not Only Sell | Only Purchase
    Franchisors should not be only sell, which means the franchisor must sell the franchise system to the right franchisee. Not all prospective franchisees match the business the franchisor offered. Therefore, franchisor must have a clear recruitment standard in order not to choose wrongly. Likewise, from the franchisee ‘do not only purchase’, which means that the franchisee must know correctly – whether the products to be purchased from the franchisor in accordance with the desired and abilities.
  • Learn Well Rights & Responsibilities of each Party
    Neither Franchisor nor Franchisee should understand their rights and responsibilities. Thus, when the cooperation begins there are no things that are still unclear. This will make future cooperation easier. Many Franchisors still cover the things that the Franchisee should know to have their products sold. Franchisee is also sometimes dishonest with his/her circumstances so they unable to fulfill his/her obligations.
  • Mutual Attitude To be Successful Together
    Franchisor and Franchisee must be shoulder to shoulder for the sake of success together. Franchisor must have principles to make Franchise successful. If Franchisee is successful then Franchisor will be more successful. Franchisee also must assist Franchisor to keep Brand Image of products to be perceived by the customer.
  • Good Communication & Coordination
    All problems usually start from poor communication. Communication is not an easy thing, for that all parties must have a special time to interact with sufficient time to discuss the events that happened when the business starts. An improved communication will make coordination work better because all parties have a lot of interaction and build a relationship.

    All readers, the four things I have mentioned above must be done by all parties for the sake of mutual success. Franchisor should consider Franchisee as the ‘main customer should be served well’ so that they feel satisfied and willing to work even longer. Franchisee must also run a system that has been created by the Franchisor because it believes that the Franchisor will help bring it to success.

    What a wonderful thing if Franchisor and Franchisee can establish an ideal cooperation with excellent RELATIONSHIP. Hope this can happen to all your businesses.

Written by,

Djoko Kurniawan
Senior Business Consultant | UMKM Expert
DK Consulting Group Jakarta
Email: | IG: djoko.kurniawan |