Like it or not, your business and Franchise will rise and fall on the strength of your relationships – with your Customers, Franchisees and Suppliers – to name a few. Keeping thise good relationships is now fundamental to your Franchise.
Franchises rely to varying degrees on outside supplier and wholesalers providing goods and services to the Franchise. Franchisees “buy” these relationships as part of their franchise contract with you. Even a Bakery which bakes fresh daily on the premises relies on external providers from delivery of ingredients to maintenance of equipment.
Smart Franchisors and Franchisees concentrate on what they do best and rely on experts with complementary skills to support their business. No one can be all things to all men. You can’t do everything. Well chosen business suppliers provide great mutual benefit. Such relationships – that are interdependent (as opposed to being dependant or independent) keep the wheels of commerce oiled and allow Franchises to continue to source and serve their markets.
Whatever your franchise requires, must be clearly identified and firmly contracted with whoever or whatever you need to ensure the reliable operation of your franchise. Your Franchisees are relying on the strength of your supply contracts to stay in business. You cannot have loose supply agreements or handshake agreements at this point. Any relationship with suppliers for any goods or services must be documented, negotiated and the guidelines firmly established. Any future disruptions could result in huge costs: you have risked loss of business for your Franchisee who has relied on you to ensure that any form of disruption does not happen.
And having said all that – Always have a backup in place! You don’t know what the future may hold and your suppliers are at the whim of changing circumstances as well. You need an insurance policy to safeguard you and your Franchisees.
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