How to resolve franchising conflicts
Franchising is one of the most popular modes of conducting business nowadays. Several smaller businesses are turning towards franchising to expand their business and to make a profit. However franchising, like any other business, contains a certain amount of risk. It is necessary that the franchisee maintains a healthy relationship with the franchisor in order to avoid the business risks. Some of the common problems which might affect the business relationship between the two sides are as follows:
For several small franchisors, large scale marketing is certainly not a viable option. This is not possible especially for businesses that offer niche products and services. But if necessary, the franchisor can work with the franchisee to determine the best solution to their advertising and marketing needs. Both parties can agree to the best solution to ensure that they make the most out of their advertising strategy.
It can also be troublesome if the brand name or the reputation of the brand is not helping to improve business for the franchisee. The franchisee may then feel that they have not received value for money.
Obviously the franchisor should look at how they can improve the situation for the franchisee but the franchisee must also remember that by working for a franchise which already has an established brand, they are greatly increasing their chances of success in the business and that the franchisor will support them and help them to grow.
As with any business venture, there are risks, but with franchising, you have the best chance of success.