Franchisor and Franchisee Relationship

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Franchisor and Franchisee Relationship Establishin
g a business is not that easy. For the proper
establishment of business, an individual has to
fully devote himself with all his available
resources including money, time and efforts. By
investing your resources, you can't be so sure
about your success in the business. But, if you
want to start a business without all that hard
work, just go for the franchise business. It is
not that you won't need to do hard work in
running a franchise business. The main
difference is that in a franchise business, you
are actually taking a part of the business to run
that is already successful at some other
location.
Entering into a franchise is a very serious
relationship and you need to be very clear about
establishing a healthy franchisor and franchisee
relationship. If we talk about an ideal
franchisor/franchisee relationship, each party
tries to do bargain of their part through common
goals, mutual respects, and active
communication. Normally in marriage, the main
evil is the mutual agreement, if there is a need
to check the agreement in between it means your
relationship is not on the right track. The same
rule applies to the franchise business. To avoid
the agreement termination, both franchisors and
franchisees need to understand and respect the
responsibility and role given them by the
agreement.
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Normally, this relationship is made possible only
by the franchisor and the franchisee only takes
the vision and idea of the industry- proven
business model. Franchisors only support the
Indian franchisees with their available
resources plus training and support to establish
the franchise business in other territories.
Most of the franchisee/franchisor relationships
come to an end because either the franchisee
misunderstands the franchising model or the
franchisor fails to set the expectations. One
more reason for franchise agreement failure is
that the franchisees tend to see them as an
entrepreneurial and they often forget they have
taken the permission to run a process of the
successful business model. It is important to
note that franchising offers the opportunity for
business ownership, that runs under the
restrictions of an established brand name, so
franchisees need to follow the set operating
standards. Franchisees, on the other hand, have
no right to make any changes in the business
operation it means they have to maintain the
existing operating standard set by the
franchisor. Instead of considering them as an
important part of their business,
franchisees as their customers by
franchisors often treat forgetting the common
business goals and brand loyalty. For More About
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