(FS9) Working Your Way Through Conflicts That Occur in Franchising

There are many reasons why a business might run into conflict. It could have crossed a legal boundary with another company, it could be bought out by someone else, it could even fall into debt because the franchisor is making poor decisions on Research and development or other expensive things. Most franchisors should tell their franchisees when conflict is occurring if it will affect them. They may not disclose all the information for legal reasons and it’s important to remember that the franchisor doesn’t have to tell its franchisees everything, especially if it’s not gone to court yet. If a company is bought out, they aren’t even required to tell their franchisees the reason why.


Watching for Incoming Conflicts

The key to knowing when conflict is coming, happening, or has happened is through communication. It’s important to establish solid communication with your franchisor early on so they know how to reach you and that if something happens, they know that they can reach you. Likewise, it’s important for you to have the appropriate contact information so if you have any questions, you can call the field consultants and ask them whether it’s problems with an employee, product, or equipment.


FranchisingThis can include a scenario like: it doesn’t seem to matter what you’re doing, your sales are down and have been for the past few months. You can see the incoming financial problems.  You’re worried about meeting all your financial commitments to the bank, to the suppliers, to your franchisor… so you call the franchisor. It’s particularly important to keep franchisors in the loop when you’re having trouble. They can offer advice, defer payment, send out a field agent to assess the situation, and even help find solutions to the problem. The worst thing you can do if your franchise falls under conflict is to shut out everyone and try to deal with it on your own. One of the perks of franchising is the community which is there to help you succeed, especially in times of hardship.


Talking About Negative Changes Made Through Franchising Processes

Whether the changes are within your store or company, within your city, county, or nationally, it’s important to talk to your franchisor if they affect your store negatively. If you’re not sure about taking the problem to the franchisor yet, reach out to your fellow franchisees. You may find that you’re not the only one having the problem, especially if it’s regional or a change in company policy. When many franchisees come together to talk to the franchisor, there’s more power in their words.


How You Approach Problems Determines Outcome

Regardless of how or when you approach your franchisor, you must remember to be respectful at all times and to listen. The franchisor has the interest of the franchise at heart, so what he does may not seem to make sense to you. Even if you disagree with the direction or he doesn’t take your concerns into consideration, you must remain respectful. You’re signed into legal papers and obliged to do certain things in your relationship with your franchisor—and if you remain respectful and level headed in times, your franchisor will recognize that in your.


Continue Reading the Franchise Series 9 With:

  • Fellowship Relationships to Expect in Franchising
  • Supporting Changes in Your Franchising System
  • Making Changes to Your Franchising Systems
  • Building Successful Relationships in Franchising Systems
  • Maturing Your Franchising Relationships as Time Passes
  • Franchising Research, Development, and Office Support
  • Managing System Size or Focus Changes in Franchising
  • Reaching Out to Fellow Franchises for Advice
  • Joining Advisory Councils and Associations for Franchises
  • Bringing the Best To Your Franchises On Your Own