By Tom Norwell, February 17, 2012

There is a time that a Franchisor inevitably ask themselves why some of their Franchisees bought the franchise in the first place.  The answer usually lies in how the relationship is initially handled by the Franchisor.  Usually a Franchisee comes into a system with good intentions; to leverage the Franchisor’s knowledge and Brand equity by using the systems and processes the Franchisor has developed.  The trouble is, it’s not long before a Franchisee gets to a level of operational competency.  Ad that to the independence that they strove to attain through Franchising and they start to fool themselves into thinking that they are entrepreneurs when the reality is that they are not.  If they were, they would have developed the brand, the operating system, and processes themselves.  Try telling that to a group of Franchisees that in short order think they know more about the business than the people that developed it in the first place.  Yes, many Franchisees will say that “my market is different” and “my customers” are unique.  Therein lies the fundamental mistake of the Franchisor; they haven’t made it clear from the outset that the “Market” and the “Customer” is not the Franchisee’s … … it’s the Franchisor’s.  The Franchisee enters into a term agreement with the Franchisor to have access to, among other things, the right to us the Franchisor’s Brand to access the Franchisor’s Customers in the market that the Franchisor sees fit.  I often think that Franchisors would be better served to instil this philosophy into their Franchisees at the outset and continually reinforce it.

 

‘cause when they don’t, … … … they’ll feel they are herding cats!