Mitigate risk and drive profits with the franchisor-franchisee relationship -
The traditional franchisor-franchisee relationship is evolving in response to a riskier legal and regulatory environment. So how can franchisors prepare for this new reality?
An evolving relationship
The franchisor-franchisee relationship is a model most people understand, and it has historically led to mutually beneficial success. The franchisor owns the brand and related intangibles such as recipes, processes, and technology. It sets the standards, provides support services, and takes a fee in return. The franchisee owns and operates the assets, employs the staff, puts in the hours, and earns a return as an entrepreneur.
But this traditional model is evolving in response to an increasingly riskier legal and regulatory environment. As the contractual agreements and division of responsibilities become more complex, the landscape is fraught with additional pressure and risk.
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Copyright Deloitte. Reprinted with permission.