A new and exciting relationship exists today between the successful franchisee and successful franchisor. This relationship is centered on trust, ability to work together, and the desire to achieve common goals. This relationship has become an interdependency and seeks to provide support for both the franchisee and franchisor in their business dealings.

  The Four Phases of the Franchising Relationship

When learning how to ride a bicycle, we learn that there two major operations which are essential to its proper functioning:

(1) steering power and 

(2) pedal power. 

We can ask the question which one is more important, the steering power or the pedal power. Upon further investigation it is apparent that both are important and both are interdependent. For the bicycle to properly function and go in the correct direction, or turn the right way, it is required that we use both the steering power and the pedal power to get where we want to go.

The same is true with franchising. We could ask which one is more important, the franchisee or the franchisor. Both are equally important in the final success of the franchisor operation.

Probably the most critical factor involved in the ultimate success of a franchise organization is the relationship which exists between the franchisor and the franchisees. By following the franchise life cycle, it is fairly easy to see four distinct and different stages involved in the franchisor/franchisee relationship. These four critical stages include:

(1) Introduction (built on trust, shared desires, and interdependence)

(2) Growth

(3) Maturity

(4) Decline/development