Communication Between Franchisee and Franchisor: The Proverbial Two Way Street

Whether a franchise brand is small or large, communication across all levels is key to a long-term, successful relationship between franchisee and franchisor. As brands expand and experience growing pains, communication provides an opportunity to establish rapport and build trust with their network of franchise owners.

Nigel Travis served as CEO of Dunkin’ Brands from 2009 to July 2018, when he was appointed Executive Chairman of the Board for Dunkin’ Brands. He has also served as President and COO of Blockbuster, President and CEO of Papa John’s, and Senior Vice President of Human Resources at Burger King. His new book, The Challenge Culture, came out on September 18th and focuses on positive pushback, or "questioning everything without trashing anyone."  

Of communication between franchisee and franchisor, Travis notes that in his years of franchising experience, he has “...found over time that you need to recognize that often franchisees and franchisors have different goals. For example, franchisees often believe that the brand’s profitability is at conflict with their own. [My focus has] always been to bridge that gap by being transparent and open. Franchisees come in different sizes and their expectations can vary. Both franchisees and franchisors want one major thing – active listening and taking their messages seriously.”

David Hicks, co-CEO of HomeVestors, the franchisor of We Buy Ugly Houses, agrees, noting not only the importance of regular communication, but also transparent communication to build trust within a franchise system.

“The franchisee is the franchisor’s customer, and communication is always fundamental to keeping the customer happy,” said Hicks. “Many franchisors have a confrontational relationship with their franchisees, and the reason for this is a lack of trust. Trust can only be developed through open communication within the franchise network. Franchisees are buying a business, and they deserve to know about everything that may impact it. They should expect communication to be ongoing, frequent and two-way.”

Both Travis and Hicks highlight the importance of establishing a franchise advisory council (FAC), a group of active and engaged franchisees that act as the liaison to the corporate team. The FAC hold regular meetings and field comments, questions and concerns from franchisees.

Hicks encourages franchise brands to “...establish a structure that facilitates communication as you grow. In the case of HomeVestors, this structure includes a [FAC] with representatives from each region, as well as frequent meetings with the franchise leaders. Additionally, our intranet includes a blog and discussion boards that provide both franchisees and leadership with a forum to ask questions and communicate. We also have franchisee-only meetings with senior leadership at both of our nationwide meetings each year, which give franchisees a chance to ask any questions they would like.”

Franchisors win just by providing franchisees with a platform to ask questions and offer ideas to their fellow franchisees. Even if it’s not a direct path to the CEO, they will feel validated that they are able to share their thoughts with the FAC who can, in turn, communicate with the corporate team.

“At Dunkin’, we communicate through the regular franchise advisory systems that we have for both brands, Dunkin Donuts and Baskin Robbins, but these are also supported by regular emails and videos that I truly believe add a form of personalization,” said Travis. “[Communication between franchisee and franchisor] is vital and the life blood of a culture. Constant communication means that through active listening, new ideas, different thoughts and challenges are embraced.”

The healthiest franchise systems not only provide the tools for franchisees to communicate, but encourage them to have a voice and share their opinions for the greater good of the system.

“Communication is key to developing a culture [and should] always be two-way, allowing open channels for feedback and questions,” said Hicks. “Mistakes will happen. Admit them, fix them, and learn from them, making sure to communicate each step of the way.