Building Trust with Both Franchisees and Franchisors

Trust is easily built but can also be quickly lost. The most important rule is simple: never lie to franchisees. If full transparency is not possible in a situation, it is often better to say nothing rather than provide misleading information.

Trust is best developed through consistent communication and a united team culture. In my experience, new franchisees benefit from daily contact during the early stages of their business. For established franchisees who have been operating for six months or longer, weekly contact is generally sufficient.

These interactions do not always need to be work-related. A simple question such as “How are things going?” can often reveal valuable insights. In many cases, franchisees will voluntarily share whether they are experiencing success or challenges.

If a franchisee is struggling, it is advisable to arrange a relaxed meeting with them and a trusted existing franchisee—perhaps over coffee or a meal at the franchisor’s expense—to better understand the situation. In many cases, the issue may not be business-related but rather personal circumstances affecting their performance. Demonstrating compassion and offering support can help maintain motivation. At times, other franchisees may even be able to assist temporarily to keep the business operating smoothly.

If the issue is operational, the presence of an experienced franchisee can provide practical advice alongside the franchisor’s guidance to help resolve the problem. Showing genuine interest and support is essential, as a lack of engagement quickly erodes trust.

Regular franchise meetings combined with informal gatherings—such as a BBQ four or five times per year—are highly effective in building relationships, unity, and open communication across the network.

This same approach should also apply between master franchisors and regional franchisors. As the saying goes, “You never get a second chance at a first impression.” Establishing trust early between all levels of the franchise system significantly increases the likelihood of long-term success.

The presence of trust is often evident from the beginning, as prospective franchisees will not invest financially or commit to the business unless they feel confident in the franchisor. However, it remains the franchisor’s responsibility to maintain and strengthen that trust over time.

When trust begins to decline, the signs are usually immediate—communication slows or stops. If this situation is not addressed quickly, rebuilding trust can be extremely difficult. In most cases, the cause is a misunderstanding or a statement that has been misinterpreted.

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 in franchise organizations including roles as COO and CEO of the Jim’s Group (Australia, New Zealand and Canada).