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Why Franchisors And Franchisees Disagree About Franchise Support

Smart Company:

One of the reasons for the failure of start up franchisors cited in a study by UK academic John Stanworth was that new franchisors often underestimated the amount and cost of support required by franchisees.

Similarly, one of the greatest sources of franchisee complaints reported to the Australian Competition and Consumer Commission (ACCC) about their franchisor arises from a perceived lack of support.

The issue of support – and the form or forms it should take – exists as a challenge to both franchisors and franchisees. Franchisees can find that the support offered does not add value to their businesses or meet their expectations, while franchisors can find that the cost of support can quickly erode the profitability or other benefits of the franchise model.

The result is that both parties recognise the same issue from different perspectives, and often collide accordingly.

However, support comes in different forms, and covers different things. It is worth exploring how support means different things to both parties in a franchise relationship.

The Franchisee’s Perspectiveread on.

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    Comments
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    Hi! I am honored to see that my company has made it to your website! Thank you! I have franchsed the company and the products
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