The franchising industry is about relationships. This is something I’ve always said and firmly believe. Relationships matter in this business. Staying in touch with people is one of the things on which I’ve prided myself. If you keep those connections in place, you can always rely on people when you need them and vice versa.
Below are the key relationships in franchising:
1. Franchisor-Franchisee — this is the most important relationship of all that needs to be managed. Each relies on the other to ensure success. If there is a breakdown in the trust and respect that is required, it doesn’t bode well. The cracks in this relationship show straight through to the bottom line.
2. Franchisee- Employee — the QSR franchising industry is one taking the biggest beating when it comes to labor costs. Franchisees have to manage the difficult balance of paying employees a fair wage but still try to earn a profit at the end of the day. It’s not that these employers want to pay their employees minimum wage…it’s often the case that if they don’t keep labor costs in check, they will be out of business. Attempting to show employees they are valued in this environment can be a challenging one.
3. Employee-Customer — this is a crucial relationship. If employees are unhappy in their work, this is often reflected onto the customer. Customer relationship management isn’t just a piece of software. It’s recognizing that customer that comes to your establishment once a month. It’s ensuring that customer gets the best deal and best value when they choose your restaurants. It’s making sure that customer leaves happy and keeps coming back for more.
4. Vendors — vendor relationships are very important to ensure that businesses are getting the best possible value in terms of their offerings to consumers. Vendors provide a lot of insight and solutions in terms of product innovation, costs, efficiencies, packaging, etc.
So pick up that phone, send that text message, shoot over that email, send that card and build those relationships. They’ll benefit you in the long run.