Building Trust Between Franchisors and Franchisees

Regional franchisors should maintain at least weekly contact with their franchisees. It is important for franchisees to feel confident that their franchisor is consistently working to secure better supplier arrangements, additional work opportunities, improved systems, and new ideas to support business growth.

Effective franchisors regularly share successful practices from across the network, as well as lessons learned from unsuccessful approaches, allowing others to benefit from collective experience.

One of the most common causes of conflict and loss of trust within franchise systems is the misuse—or perceived lack of transparency—of marketing funds. To avoid this, franchisors should maintain complete transparency regarding how every dollar of the marketing fund is spent.

Historically, the most successful franchisors often contribute an additional 10–25% above the total franchisee marketing contributions. When analysed, this additional investment typically delivers returns that benefit the franchisor many times over.

About the Author

Tino Grossi

Director of Franchise Development

Ultrabrands.ca

Tino is an experienced executive with over 15 years of experience in the franchise industry, including senior positions. Tino has held senior positions in franchise organizations including roles as COO and CEO of the Jim’s Group (Australia, New Zealand and Canada).