Franchise Relationships: A Micro-Image of Life
The number one topic at this site, as well as all other franchise portals dealing with anything outside of ‘recruitment’, is that of “franchise relationships”. And that quite appropriate, because when you simmer franchising to its essence, ‘relationships’ is the final reduction.
Tainted hearts, conniving minds, broken spirits, and depleted bank accounts can contribute to, and result from, any number of activities of which franchising is just one. Think about it. Most people dislike their jobs; more than 75% I read. I've also read that marriages fail at a rate of more than 50%, second marriages fail at a higher rate. At least seven of ten new businesses fail, and more than three quarters of new products never receive market acceptance.
Is it any wonder that franchising suffers just the same relationship ailments of poor human judgement?
Nope.
Franchising is no different than any other human endeavor as it regards thoughtful planning, discernment (on each side), careful analysis (again on each side), and a contract (moral and/or legal). Franchise decisions, like others, require business/relationship acumen, but they also involve assessments that we may not be willing to address. In franchising, as with in life in general, there exists good and evil.
Of course, like all of you, I’m in favor of analyzing important decisions. But the facts of life, indeed the drives of hormonal life, dictate that we humans generally are not going to let the brain drive a decision when the mood is right. How do you think bad things happen?
Sex sells. Food sells. A lot of things sell. How do you think that lousy deals sell?
The scoundrels of franchising will never go away because they will always have their prey.
No AAFD, no FTC; indeed there is nothing short of informed ‘analysis’ that will ever save the sheep from the wolf.
Franchising is just another expression of worldly relationships. Until investors get their heads out of the sand, they will continue to make bad decisions, be fleeced, and then blog with complaints. Divorcees will tell of the same tales as told by ex-franchisees, and so on.
Good decision making is just not a built-in human attribute.
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Just like personal relationships, the franchisee/franchisor relationship requires constant effort and understanding. Ultimately, the key is respectful communication and the willingness to listen to alternative viewpoints. At times in every good and lasting relationship, participants are forced to sacrifice immediate personal gain for the collective good. Focusing on common goals and accepting that there are some issues on which there will never be agreement is merely the first step towards a harmonious and profitable union. Every franchisee must take a "leap of faith" when signing a franchise agreement that the franchisor will promote the brand and take the necessary steps to keep the business model viable. Particularly in times of economic distress, keeping the spirit of cooperation between franchisee and franchisor alive is crucial to maintaining morale. As long as there are franchises, franchisors and franchisees will be in conflict and have instances where they are at cross purposes. By refusing to get mired in the negative and working together to make things better for everyone, the system can be made stronger--an end result which benefits both sides.
This was my thought process when I entertained looking at a frozen yogurt shop. I kept a note pad and wrote down those thoughts with no editing as they came to me.
Unfortunately, at the last moment a sudden set-back in my family's financial situation prevented me from investing my life's earnings into the franchise.
Bob, I believe that your assessment of decision making is as accurate as it is humorous. Experience tells me that due diligence, analysis, etc, usually stops (being serious) at the point when it might get in the way of what we want. You describe it perfectly.
Nick Bibby is a franchise consultant and principal of the Bibby Group.
Nick Bibby founded BibbyGroup.com, an organization dedicated to franchise and entrepreneurial excellence.
"The scoundrels of franchising will never go away because they will always have their prey."
What a profound statement. There is good and bad. That is why I believe there has to be good zors out there. Once the trust is gone in any relationship it is hard to get it back. If zors want their zees to trust them they have to nurture the relationship. Just like in a marriage, If you don't show you care, that relationship could dissapate in time.
I believe business is about building relationships. The franchising world is no different.
I also believe scoundrels can read people. They are pros at finding the type of people who are their targets. That is why forums are important so people will understand how to spot the scoundrels. They will know what to look for.