A panelist at the FNB Franchise Leadership Summit, Lombard-Maree discussed “the relationship between Landlords, franchisors and ultimately franchisees.” As a teaser to the main event – 23 & 24 October – she shared how McDonald’s manages this vital relationship:
“In our model, we follow a three pillar approach where the franchisor enters into an agreement with the landlord. We enter into a long-term agreement (the lease agreement) which we then sublease to the franchisee – who is then the sub-tenant.” With a mutual understanding, Lombard-Maree and her team ensure that the relationship between them and the landlord is healthy.
She continued to explain, “We have an orientation meeting between ourselves, the landlord, and the franchisee – where the operational expectations are explained. This is an opportunity for both the landlord and franchisee to get to know each other and therefore build a relationship”.
This is done to run the relationship amongst the three parties in a way that will create win-win-win solutions.
Franchisees need to do their research…
Lombard-Maree advises aspirant franchisees to do research on their potential franchisor. “Make sure that your franchisor has a track record and a history of success. Which means that you should be passionate about the brand and be proud to be associated with it.”