{"id":7641,"date":"2021-01-02T13:11:43","date_gmt":"2021-01-02T13:11:43","guid":{"rendered":"https:\/\/www.franchiselocal.co.uk\/news\/?p=7641"},"modified":"2022-01-27T10:51:08","modified_gmt":"2022-01-27T10:51:08","slug":"franchisor-and-franchisee-relationships-in-2021","status":"publish","type":"post","link":"https:\/\/www.franchiselocal.co.uk\/news\/franchisor-and-franchisee-relationships-in-2021\/","title":{"rendered":"Franchisor And Franchisee Relationships In 2021"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #101010;color:#101010\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #101010;color:#101010\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchisor-and-franchisee-relationships-in-2021\/#franchising-is-a-great-system-but-not-for-everyone\" >Franchising Is A Great System, But NOT For Everyone!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchisor-and-franchisee-relationships-in-2021\/#there-are-roles-that-all-franchisors-and-franchisees-must-undertake\" >There Are Roles That All Franchisors And Franchisees Must Undertake<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchisor-and-franchisee-relationships-in-2021\/#you-will-not-%e2%80%98own-the-brand-as-a-franchisee\" >You Will Not \u2018Own\u2019 The Brand As A Franchisee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchisor-and-franchisee-relationships-in-2021\/#you-will-have-some-control-as-a-franchisee\" >You Will Have Some Control As A Franchisee!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchisor-and-franchisee-relationships-in-2021\/#you-must-work-together\" >You Must Work Together!<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>Tired of the uncertainly of 2020 and keen to do something by yourself and start your very own business? Maybe you have even heard of franchising as one way to do this, but know very little about it?<\/p>\n<p>Franchising can certainly be one way to get going much quicker than you probably would be able to alone, however, it is also fair to say that franchising is not for everyone! Now, that might seem a strange statement coming from a franchising consultant don\u2019t you think?<\/p>\n<p>Let me explain a little more\u2026<\/p>\n<p>There are many areas that you need to be aware of in franchising and here is just one of them for you to think about that might help you make your decisions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"franchising-is-a-great-system-but-not-for-everyone\"><\/span>Franchising Is A Great System, But NOT For Everyone!<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When all the elements are right in franchising, there should be a high-value relationship between the franchisee (you) and the franchisor (the person or company that sold you your franchise) because over time the two of you will definitely become <em>interdependent<\/em>, but, when this fails it goes horribly wrong for both parties and everyone loses.<\/p>\n<p>I want to be really clear with you, that nobody wins when things go wrong, and they sometimes do. However, it is a great place to be when the successes can be shared and a great position to be in which will help to drive the business forwards.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"there-are-roles-that-all-franchisors-and-franchisees-must-undertake\"><\/span>There Are Roles That All Franchisors And Franchisees Must Undertake<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You will be buying into a proven concept with a system to operate as a franchisee, direct from the franchisor who has a right to sell what you are paying your hard-earned cash for; be sure that what is being described to you is worthy of the investment.<\/p>\n<p>I\u2019ve often asked myself what it would cost me to replicate what is being offered as the franchise offering and too many times see the initial investment as minimal compared to going alone, again, a clear advantage of <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-key-differences-between-buying-a-franchise-and-starting-your-own-brand\/\">buying a franchise versus going alone<\/a>. The franchisor does not win on a single sale but then hopes to sell that same principle multiple times across the UK, and often beyond.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"you-will-not-%e2%80%98own-the-brand-as-a-franchisee\"><\/span>You Will Not \u2018Own\u2019 The Brand As A Franchisee<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Get used to some restrictions as a franchisee. For example, there will be marketing restrictions (as the franchisor will ensure that the brand is protected at all times) you might also have territory restrictions as this is what helps the franchisor be in a position to sell additional territories across the UK. However, it is fair to say that you will accept and purchase an area, or territory that the franchisor confirms is equal to, or better than their own areas or pilots and you should feel confident that there should be enough business for you to replicate their earlier successes.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"you-will-have-some-control-as-a-franchisee\"><\/span>You Will Have Some Control As A Franchisee!<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A franchise will still be <u>your<\/u> business and you can expect to be in control of cash flow, for example, maybe operating minimum levels of marketing and advertising, often with no maximum levels but you will be guided by the franchisor who will be able to demonstrate what decent levels of spend activity levels look like for revenue, often referred to as R.O.I.<\/p>\n<p>Do not just run off with your own ideas either, there will be strict guidelines on what you can do with any marketing and advertising. You should see this as a good thing as there will be a consistent message as the brand grows, and when done correctly, you will even benefit from the entire franchisor set-up and everyone playing their own part in awareness campaigns.<\/p>\n<p>A franchisor should, however, be receptive to your ideas or new methodology, but I would advise that you first get the basics under your belt to ensure you have at least followed the system that you have purchased by the letter and are showing growth as a result of doing so.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"you-must-work-together\"><\/span>You Must Work Together!<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>All franchisors and franchisees are not only duty, but also contractually bound to work together whether is contract law written or simply \u2018best practice\u2019. It is only when these parts break-down that it can all go wrong, as a franchisee, you are not simply at risk of losing any capital you may have invested. The implications of failure (at least from your part) can sometimes be more far-reaching than that (but maybe too extensive for this short article) and are mostly part of any <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/what-is-a-franchise-opportunity\/\">franchise agreement<\/a> that you will sign on the exchange of contacts, but also for the franchisor there are damaging effects as they will not want to be part of a failed network as it will impact on their growth plans moving forwards.<\/p>\n<p>At the end of the day, work together, and do you know what\u2026everyone just goes on to make a little bit of money and everyone just sleeps that little bit better at night\u2026now, that is the sort of business I am more than happy to play my part in!<\/p>\n<p>Happy New Year to you all, I look forward to writing more monthly articles and assisting you in what will be a very busy year in franchising, we will see many more franchisors and franchisees than at any other point in UK history this year, it is a great place to be in when done right!<\/p>\n<p><em>This article was written by Richard Pakey who is a franchising expert and Regional Director for the award-winning\u00a0<a href=\"https:\/\/www.limelicensinggroup.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Lime Licensing Group<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tired of the uncertainly of 2020 and keen to do something by yourself and start your very own business? Maybe you have even heard of franchising as one way to do this, but know very little about it? Franchising can certainly be one way to get going much quicker than you probably would be able [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":7642,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1467],"tags":[],"class_list":["post-7641","post","type-post","status-publish","format-standard","has-post-thumbnail","category-franchise-information"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/01\/Franchisor-And-Franchisee-Relationships-In-2021.jpg","_links":{"self":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/7641","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/comments?post=7641"}],"version-history":[{"count":0,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/7641\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media\/7642"}],"wp:attachment":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media?parent=7641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/categories?post=7641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/tags?post=7641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}