Measuring the Franchise Relationship: The Issue of Satisfaction Looms Large

Maintaining constructive relationships with franchisees is a lot easier to talk about than it is to put into practice. For franchisors, this is an ongoing challenge. Several things can strain relationships. Among them are:

Stress

When people are stressed they get cranky and difficult to deal with. Whether you are a franchisor or a franchisee, financial and workplace pressures will always test your patience and resolve. If stress levels get too high they can cause erratic

Change

The ongoing changes that have been sweeping the world are also affecting franchise systems, resulting in a constant need to innovate. This means franchisees often have to adopt new systems, reinvest in their business and sell new types of products or services. Most people resist having change foisted upon them which can also create a strain in the franchise relationship.

The Law of Perception

A company may think it has clearly explained something, but people will always put their own interpretation on what they hear. The saying "When perception meets reality, reality always comes out second best" is very true. What the listener heard is more important than what was said. For instance, franchisees sometimes misinterpret a franchisor's motives for taking certain decisions and this can undermine the trust so important for a healthy franchise relationship.

The Franchise E-Factor

Franchisees, I believe, will typically move through six psychological stages in their relationship with their franchisor. I call this the "Franchise E-Factor." which is characterized by the stages Glee, Fee, Me, Free, See and We. Franchisees may quickly move from initial feelings of glee to the third, me, stage. Not all franchisees make it to the sixth, we stage. The more franchisees that are stuck in the middle stages of the Franchise E-Factor, the more unrest there is likely to be in a franchise system.

Insensitivity to the feelings of others

Whether it is called emotional intelligence, people skills or just good manners, franchisors should show their franchisees adequate respect and consideration. Leaders who are overly authoritarian or insensitive are likely to create a residue of resentment in their franchisees. At some stage this is likely to express itself as a relationship breakdown.