As you begin developing new franchise locations, it’s essential to make sure you have the mechanisms in place for approval. Make certain franchisees are hiring approved vendors, you’re monitoring the costs, and you’re holding your designated vendors accountable.
Work with your franchisees when there are delays in construction. Your agreement may lay out a notification process regarding construction delays, so as long as your franchisee is communicating with you about such delays. It’s generally going to be the best practice as the franchisor to be understanding and to be flexible with the franchisee about date/time to open accordingly.
Best Practice
Make sure that you have reputable vendors. Part of your job is to hold the vendors accountable for doing a good job for your franchisees. You should be acting as an advocate in the background. Poor franchisors treat their vendors as an opportunity for graft and corruption, using them to get a kickback as opposed to you doing a great job. You’re in the royalty business, not the grafting business.
Franchisors often don’t do a good enough job holding their vendors accountable for doing quality work. You should be attuned to that. One way your relationship with your franchisees will go south is if they perceive that your loyalty lies with the vendor over the franchisee. When vendors do well and provide efficient work for the franchisees, the franchisee gets operational faster, and royalties get paid sooner.