Managing The Franchise Relationship By Michael Cha Director, Business Development Genesis BBQ (Asia Pacific) Pte Ltd 2015/4/13 1 A HOUSE DIVIDED AGAINST ITSELF WILL NOT STAND…. Maintaining good relationship therefore, is one of the key success factors in the business 2015/4/13 2 2015/4/13 3 S.E Asia : 16 Australia, Brunei, Cambodia, Taiwan, Indonesia, Laos, Malaysia, New Zealand, Philippines, Singapore, Thailand, Myanmar, Vietnam, East Timor, Fiji, Papua New Guinea Middle East : 15 Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, The Palestinian Territories, Qatar, Saudi Arabia, Syria, Turkey, UAE, Yemen South Asia : 8 Bangladesh, India, Maldives, Nepal, Sri Lanka, Pakistan, Afghanistan, Bhutan Franchisor Trademark, Name or Logo and a quality Product or Service Exerts Significant Degree Of Control Over Method Of Operations or Provides Significant Assistance Obtains The Right To Operate The Business Required To Make Payment (Franchise Fee, Royalty Fee) Franchisee 4 Basic Elements for a strong relationship • Respect • Communication • Acceptance • Trust How can international franchisees be made to feel as part of the family? • Share the vision & principle • Develop tools • Regular meetings, Visits • Others Signs that things are not going well • Attitude changes • Drop in sales • No response ( email, phone call, etc) • Delays or non-payments of royalty How to solve problems • Define the problem • Identify alternatives for approaches to resolve the problem • Implementation • Monitor THE LETTER C franchisor franchisee • COMMITMENT • COMMITMENT “count on me” “Count ‘us’ in” • COMMUNICATION • COMMUNICATION • CONTINUOUS • CUSTOMER SERVICE SUPPORT • COMPETITIVENESS • COSTS REDUCTION • COMPLIANCE • CONSISTENCY Understanding The Franchisee & Minimizing Conflicts - The Franchisee Motivation Factor. - Balancing Franchisor Expansion with Franchisee’s perception of encroachment. - Priority placed on effective franchise relations. - Always keep our ears to the ground. 2015/4/13 11