5 Best Practices for an Ideal Franchisor–Franchisee Relationship

franchisor-franchisee relationship

As the EVP of franchise operations for My Place Hotels, a leading hotel franchise company, I’ve learned that the franchisor–franchisee relationship is key to long-term success. A strong partnership fosters trust, loyalty, and mutual growth, forming the foundation for sustained success. Based on my experience at My Place, here are five best practices to create enduring and mutually rewarding franchisor–franchisee relationships:

Maintain clear and open communication: This is the cornerstone of any successful partnership. Before signing a franchise agreement, we prioritize bringing potential partners to our headquarters in Aberdeen, South Dakota, to establish that strong foundation. From the beginning, aligning on expectations and sharing goals is critical. Regular check-ins—whether through calls, emails, or in-person meetings—are essential for fostering collaboration and strengthening partnerships. Transparency builds trust, minimizes misunderstandings, and keeps both parties aligned on achieving shared success.

Foster mutual respect and collaboration: The franchisor–franchisee relationship should operate as a true partnership rather than a hierarchy. At My Place, we understand that our success is directly tied to the success of our franchisees, who proudly display the My Place logo on their buildings. We respect their local market expertise and actively seek their input on operational strategies. When franchisees feel valued and included, they become even more motivated to contribute to the brand’s growth and success.

Emphasize consistent brand standards: At My Place, we collaborate closely with our franchisees through ongoing quality evaluations and training to uphold brand standards. By providing clear guidelines and allowing flexibility to adapt to local market needs, we achieve a balance that fosters satisfied guests and strong performance. This approach ensures brand integrity while encouraging localized innovation.

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Provide comprehensive training and support: The success of franchisees is closely tied to their engagement in both initial training and ongoing support. We prioritize delivering a thorough onboarding process, ensuring franchisees are equipped with essential knowledge across areas like administrative procedures, operational guidance, brand standards, and guest relations. We also maintain an accessible support system to assist them as they navigate day-to-day operations. I believe that when franchisees feel empowered and well-supported, they are more likely to thrive and confidently uphold our brand standards.

Recognize and celebrate success: Recognizing and celebrating the hard work and achievements of our franchisees and their operations teams is key to strengthening relationships. We’ve created programs and awards to honor these accomplishments year-round, covering areas such as revenue, cleanliness, and guest relations. We also spotlight top performers at our conferences and celebrate milestones as they are reached. These gestures not only express appreciation but also cultivate a strong sense of camaraderie within the brand.

In conclusion, the franchisor–franchisee relationship thrives on transparency, mutual respect, and a shared commitment to excellence. A successful franchise is one where both the franchisor and franchisee work hand in hand to achieve shared goals and long-term growth.

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Sarah Dinger
Sarah Dinger is EVP of franchise operations at My Place Hotels.