expert advice: Shane McNulty | Growth Gen.
The Franchise Relationship Better Communication Driving Better Results A franchise can seem like a dream opportunity. You see a café with mouth-watering cakes and happy customers. The success of brands like McDonald’s or Jim’s Mowing. The chance to make money doing something you love. The reality isn’t quite as rosy. You have freedom, you do something you love, yes. You also have uncertain income, the responsibility of running a business, and lots of hard work! But those are part of running any small business, not just franchises. What franchising offers is a proven business model, documented business processes, and a lower risk of failure. It also means working with your franchisor. Getting the relationship and the communication right can make all the difference. So how do you do that? 60 business franchise MAGAZINE
Communication starts with the contract Your franchise agreement is a legal document. It lists everything required of you – and everything required of your franchisor too. Do your due diligence and go through the entire contract carefully. • If anything is unclear, ask. • Look for gaps. Can you think of a business activity, issue or scenario which isn’t covered? If you can, discuss it and clarify expectations. These discussions will help you and the franchisor get onto the same page.
Understand the franchisor’s perspective Franchisees and franchisors usually have very different backgrounds and expectations. Business experience
Most franchisors are experienced, successful business owners. They have a solid business, with documented, repeatable processes. That’s why they’re in a position to franchise. Franchisees may have been employees all their career, then buy a franchise after being made redundant. Alternatively, an employee may go out on their own in the same industry, with the support of a franchise model. If this is you, you may need a shift of mindset to take responsibility for the ‘nuts and bolts’
