Confronting and Resolving Issues with Franchisees
Facing Difficult Issues
Confronting difficult issues with franchisees is inevitable for any Franchisee Support Representative. Here are some important guidelines to remember:
- Any issue that has the potential to hurt or hinder sales and/or profits is one that MUST be addressed.
- The Support Representative and the franchisee should face these issues together as a team.
Dealing with Problems of Compliance
When compliance problems surface, the Support Representative’s role is to:
- Help the franchisee understand that the license agreement is written for the benefit of the entire franchise system.
- Explain to the franchisee that the license agreement helps protect the franchisee's investment.
- Ensure that the franchisee appreciates the importance of complying with the established operating system and procedures.
- Try to identify the real issue behind a violation. Is it a means of getting attention or of voicing dissatisfaction?
- Through careful questioning, enable the franchisee to realize that he/she is the one responsible for being out of compliance.
- Ensure that the Franchisee understands the motivation behind the programs. Help them see the “big picture” and the “why” behind the program.
- Be sure that the franchisee's staff understand the benefits of franchising, particularly the fact that all franchisees and their employees are part of the marketing system.
- Educate Franchisees’ staff about marketing, what it is and how it differs from advertising.
- Cite other successful franchisees as testimony of how following the operating system and programs achieves results.
- Focus on helping franchisees become ever more profitable.
- Establish a process for handling violations, all the way from initial contact to license default. Clearly communicate this process to franchisees when they join the system.
- Tie the possibility for expansion to compliance.
- Offer alternatives for leaving the system that will constitute a “win/win” situation for both the franchisee and the system.
- Take a leadership role in the franchise system. Declare your belief in the franchise vision and unequivocally state your confidence about where the system is going.
- Be prepared to lose even highly successful operators if this would be a benefit to the system as a whole.
- Reward and reinforce those franchisees who are in compliance.
- Document everything.
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