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What is Responsible Franchising?

October 16, 2024

At the heart of Responsible Franchising is a commitment to mutual success, where both franchisees and franchisors focus on creating more value that benefits all stakeholders—customers, local communities, and businesses alike than they take in price or fees.

Franchisees play a pivotal role by being the face of the brand, by representing the brand and fulfilling the brand promise at the local level. Franchisees exist to deliver more value to their customers through superior products and services than they take in price. This creates a strong, loyal customer base, which is essential brand equity and building long-term success of the business.

Franchisors are responsible for equipping their franchisees with the training, tools, support, resources, and a supplier network they need to fulfill the brand promise and exceed customer expectations. The relationship isn’t just transactional; it’s built on the principle that franchisors must provide more value to the franchisee’s business than they collect through initial franchise fees and ongoing royalties. By doing so, franchisors ensure that franchisees are set up for sustainable growth and success, fostering a positive, productive partnership.

Under this model, franchisees, franchisors, suppliers, and customers are all stakeholders of the brand.

Responsible franchising demands franchisees and franchisors succeed by focusing on adding more value than they take leading to building a brand that customers trust and businesses that grow with integrity.

Get a copy of The Ultimate Guide to Responsible Franchising on Amazon.


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