A successful franchise depends heavily on a successful relationship between a franchisor and franchisee. As with any relationship‚ the success of the franchisor/franchisee relationship is based on an appropriate level of effective communication. However‚ achieving an effective level of communication with a franchisee without taking control of said franchisee's business operations can be a difficult balance.
When a franchisor takes too much control of a franchisee's business operations‚ the franchisor is then open to vicarious liability and lawsuits arising from the actions of the franchisee. Too little involvement‚ however‚ could lead to the failure of the franchisee.
The most effective communication and troubleshooting tools available to a franchisor are:
Such meetings and councils create an appropriate venue for communication. In this way‚ the franchisor can give necessary aid to its franchisees without interfering with or taking control of the franchisee's day-to-day operations.
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