Conventions, newsletters, birthday cards, teleconferences, bulletins, franchise recognition awards, grand opening flowers, CEO visits, franchise advisory committees,etc. contribute to positive franchise relations but are ineffective unless resting upon a solid foundation.
Consider the fact that franchisees would obviously prefer to have a profitable franchise with solid resale value and obtain the services they pay for versus mediocre financial results with all the frills.

RULE NUMBER 1: THE FRANCHISE MUST BE A SUCCESS
There needs to be a positive relationship between franchisee's earnings and their investment, if the franchise program isn't working fix-it. Accountants are a good resource to use. Use your accounting firm to review the franchisee financial model. Survey and gather franchisee financial results to make sure that your franchise program works.

RULE NUMBER 2: DELIVER WHAT YOU PROMISE
As franchisor deliver what you promise. Don't raise false expectations in the UFOC, in franchise sales literature or during discovery day visits by prospective franchisees.

RULE NUMBER 3: FOCUS ON A SOUND FRANCHISE PROGRAM FIRST
Focus on building a sound franchise program first. Some franchisors introduce PR activities and other soft benefits before establishing a solid franchise program.Concentrate on providing services to the new franchisees before tooting your horn.

RULE NUMBER 4: FRANCHISE LEADERSHIP MUST UNDERSTAND FRANCHISING
Its important that franchisor management understands and is knowledgeable about franchising. The franchisor needs to know what it means to be a "good" franchisor. Prospective franchisees are advised to contact other franchisees. Franchisors should contact successful franchisors in order to gain insight into how they have built successful franchise programs.

RULE 5: FRANCHISORS SHOULD HELP A STRUGGLING FRANCHISEE WHO IS DESERVING
There is nothing wrong with helping a franchisee that is having problems, but has followed the franchise program. If the effort is there, it makes good business sense to assist these franchisees. Use an action plan to document responsibilities and determine what the problems are. Could the problem be unforeseen market conditions that impact a franchisee? Consider royalty relief with a payback schedule where appropriate. The important point to keep in mind is that assisting a franchisee who is committed to the franchise program is beneficial.

RULE NUMBER 6: MEASURE THE RESULTS OF YOUR FRANCHISEES
In order to have a sound franchise program, its important to monitor the results of your franchisees performance. A franchisor won't know how well their franchise program is functioning unless they see results. Use surveys, tax returns or franchisee income statements to measure your franchise program.

In summary, good franchise relations must be built upon a solid foundation. Franchisees must achieve results that are consistent with their expectations and investment. Without these results the franchisor will encounter obstacles on the road to positive franchise relations.

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