Too often franchisee-franchiser relations resemble a bad marriage. Neither party has much affection for the other but believes he or she is locked into a partnership of financial necessity.
Although it takes both sides to make a franchise business work, the concept’s nature places most of the power and decision-making with the franchiser, not the small-business owners who, as franchisees, are a brand’s public face.
‘Most franchising, sadly, is ‘Here’s a one-sided contract, and if you want to participate in our brand, you’ve got to submit to indentured service to our company,’ says Robert Purvin, chairman of the American Association of Franchisees and Dealers.
But at least one company, motel operator U.S. Franchise Systems Inc., shows that a happy – and fruitful – union is possible. The affiliate of Global Hyatt Corp. is known for a corporate culture of collaboration, rather than confrontation, between franchiser and franchisees. Read full article.
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