ABSTRACT
For the success of any franchise system, it is necessary to have a fl awless relationship between franchisors and franchisees to build a win-win situation. Franchise relations commence with the signing of the agreement and continue evolving until termination. These relationships have to be developed on trust, communication, mutual respect, cooperation, integrity, and professionalism. Problems with franchisors and franchisees may stem from two different types of concerns: (a) relationship problems that are related to operational aspects of franchising and (b) misunderstanding or misrepresentation between what was promised or what falls within the legal boundaries. The relationship problems can be corrected whereas the other inducement problems require major effort to change since there may be unrealistic expectation on the part of the franchisees and inaccurate presentation by the franchisors. It is in the interest of both franchisors and franchisees to correct these problems as soon as they are observed; in fact, preventive measures are much better. These issues are discussed in the following paragraphs.
