Does A “Mutually Beneficial Relationship” Appeal To You When Buying A Franchise?

September 26, 2014 6:16 pm Published by 2 Comments

How do you feel about a franchisor that promises you a “mutually beneficial relationship”? Does it make you feel (choose only one):

  1. Warm, Fuzzy & Can’t Wait To Invest
  2. Ambivalent: What’s the franchisor really promising?
  3. Turned Off Because It’s Not Good Enough

If you selected “C”, I’m with you!

Franchise investments are expensive — many require your life savings, plus your signature on a note for money that you will owe even if your franchise fails, and your legally binding commitment to pay the franchisor even if your franchise falters or fails — so I’ll pass on anything that’s “mutually beneficial.” In fact, does that even sound like it’s “mutually beneficial”?

Instead, I want a franchisor who’s going to do everything possible to make my franchise business successful. Even more, I want a franchisor who has proven time after time that he or she knows how to turn franchisees into success stories, even in the worst of circumstances.

I know a franchisor will not and should not promise to make me a success, but I want the franchisor’s word for doing everything possible to help me. Beyond that, I want proof that the franchisor knows how to help me succeed. I don’t expect miracles — I’ll deliver on my end by meeting the franchisor’s requirements — but please, save the “mutually beneficial relationship” hype. That might attract neophyte franchise investors, but not me!

Am I asking for too much? You tell me.


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This post was written by Dr. John Hayes


  • Louisa says:

    I completely agree! I find this sort of statement off-putting. Whenever I hear that something is “mutually beneficial” I automatically think that means me doing the hard work, you enjoying the benefit and if it all goes wrong then I’ll be the one taking the flack and paying the price – literally!

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