Canadian franchise Tim Hortons has been in the news as of late, with concerns about franchisees
providing misinformation to analysts that may have violated the confidentiality agreement between franchisee and franchisor. It’s an understatement to say that this situation has put a strain on the business relationship between the two parties.Here, learn valuable lessons from the scenario.
1. Don’t Be Passive-Aggressive with Your Concerns
Rather than dealing with the issues the franchisees had with the brand, they went to the media. Airing complaints so publicly is no way to remedy a concern. Instead, talk to your franchisor about any red flags or obstacles you have in an effort to resolve them. If the franchisor refuses, you may want to sell and get out of that business relationship in favor of a healthier one.
2. Be Certain of the Truth
The franchisees involved were accused of providing misinformation and allegations against Tim Hortons. Once the fact that these accusations were unfounded came to light, they lost all credibility.
If you do have something you want others to know, be sure you have proof that can back up your statements.
3. Honor the Confidentiality Agreement
Becoming a franchisee requires you following certain rules and protocol, one of which is honoring the confidentiality agreement your franchisor provides. While it may not be against the law technically to breach the agreement, doing so can jeopardize your relationship with the franchisor and even put your franchise at risk.
Be sure to read through the agreement when you first buy your franchise as well as later if you have any questions about the guidelines you agreed to initially.
4. Don’t Jump to Conclusions
If you have a suspicion of what your franchisor might be doing, before you make assumptions, ask. In the case of Tim Hortons, many franchisees felt like the brand wanted to move from attracting single-store operators to larger franchisee managers. However, without evidence of such from the franchisor, this was just a guess.
Becoming a franchisee means you have open communication with your franchisor. Ask questions. Stay tapped into the company’s news and announcements. Don’t jump to conclusions based on gossip or hearsay.
5. Be a Good Partner
Franchises are, as the article linked above says, a symbiotic relationship. That means in order for you to thrive as a franchisee, you need to help the franchisor. Trying to cause harm to the brand will only cause harm to you. So use the Golden Rule when dealing with your business and only do what you would want done unto you.
Susan Guillory is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.