The A.R.T. of Franchising: Advice - Reminders - Tips


Dear Franchisor,

Welcome to Jackson Walker's ART of Franchising newsletter. As always, our intention is to provide you with timely and easy-to-read franchise advice, reminders and tips, so that, as industry leaders, your knowledge of franchising will be continually expanding.

Today's Advice, Reminder and Tip – Creating a Better Franchisor/Franchisee Relationship

We have all heard stories, and in some case had issues, regarding unhappy Franchisees who are dissatisfied with operating in a Franchisor's system. Certainly a strong relationship between a Franchisor and its Franchisee is something all parties would prefer. However, in many cases, this relationship gets derailed along the way, causing angst and lost opportunities for both parties.

It would seem, at first glance, that both parties have similar goals. As a franchised unit does better, both parties benefit, right? The Franchisee generates more revenue (and potentially more profit), and the Franchisor earns increased royalties. Yet, when you drill down a bit further, it becomes clear that both parties' interests are not completely aligned. The Franchisor is focused on the entire system, and therefore making decisions based upon what is best for the majority of units. The Franchisee is strictly focused on the single unit or units he or she is operating. What is good for the many is not always good for the few. So, how can a Franchisor maintain a positive working relationship with its Franchisees?

Please see full alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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