Franchisee-Franchisor Relations: 25 Questions To Ask About Your System's Health

Greg Nathan, founder of the Franchise Relationships Institute, just emailed #185 in his "Healthy Franchise Relationship Tips" series to subscribers. He introduced it as follows: "Someone recently asked me how a franchisor team would know if their business model was sound. This prompted me to put together the following 25 questions.

You could call it a best practices health check. If you are part of a franchisor team, this could be a great tool for promoting useful discussion in your next management meeting." Our own message to any franchisor who isn't familiar with Nathan and his work on franchisee-franchisor relations is: Where have you been all these years?

For a brief introduction, here are half a dozen of the questions from his most recent contribution, "Take the Franchisor Health Check." #1. Are you monitoring franchisee unit-level profitability monthly, using an agreed chart of accounts?

(He's from Australia.) #5. Would more than two-thirds of your franchisees be prepared to recommend your business to prospective franchisees?

#11. Is everyone in your network clear on your strategic direction and how this will help to maintain the brand's competitive edge? #13.

Do you have a code of behaviors that help to keep your culture respectful and constructive? #14. Are members of your franchisor team clear on what they are accountable for, and do franchisees know who does what?

#16. Would most franchisees say your leadership team are fair and trustworthy in how they make decisions?