How Can the Franchisee Relationship Be Perfected?

Our firm recently completed a research project that required interacting with a substantial number of the companies that are currently marketing and operating franchises in the North American real estate market. Although not part of the research objectives themselves, we could not help but notice a significant level of disconnect between the value proposition, customer experience, market vision and services being offered and promoted by the franchisors and the level of buy in and adoption by franchisors.

It appears that this situation has been a part of the business landscape, for those firms that participate in the market through a franchise agreement, for some time. It also appears that as competitive differentiation becomes more and more critically acute throughout the industry, the likelihood of this disconnect causing serious branding and competitive disadvantages significantly increases.

The discussion of this subject is not intended to be judgmental or skewed in favor of either franchisors or franchisees. A great deal of additional research would be required to determine whether the issue at hand is one of disrespect, communication or misinterpretation. It is sufficient to say that it appears as though, at the present time, franchisors are expending a great deal of thought, effort and expense in designing and implementing programs, products and services intended to assist their franchisees to differentiate and be more competitive in today's increasingly transitional marketplace. It further seems to be the case that way too many franchisees are either consciously or unconsciously rejecting these efforts in favor of either the status quo or other solutions that may be totally at odds with the approach being designed and promoted by their franchisor.