How Franchisor/Franchisee communications impacts Customer Satisfaction and Brand Loyalty



A customer’s intention to repurchase and continue to do so can be predicted by customer satisfaction.
But the linchpin between the two is brand awareness.


When a single brick and mortar business or a restaurant or boutique retailer wish to communicate with members of their team, it’s usually all done in-house. While there may be a few travelling account executives or a couple of remote customer service associates, the beating heart and soul of the operations lives within the same physical building. 

Obviously, this makes meetings easier to request and organize and operations “easier” (or less time-consuming) to co-ordinate. Everyone is (mostly) on the same page and where drops are noticed, they can be quickly addressed. But what happens when you're a franchisor? Does communication between franchisors and franchisees necessarily have to take a hit? And what effect does a streamlined internal communication system have on customer satisfaction and, by extension, the chance for customer repurchasing? As it happens, quite a lot.

Grow, and communications gets challenging
Internal communications between a franchisor (HQ) and its franchisees, while not necessarily strained, does face a greater challenge due to two factors: distance and number of units. That is to say, not everyone rests in the same geographical location, which can make maintaining singular messaging and up-to-date changes a more challenging enterprise to undertake. And, with multiple units, it’s up to the franchisor to find a way to streamline these communications across the board, in a timely and united fashion. 

Different solutions have been tried to address this quandary. E-mail lists, nope, really not working. File servers and Dropbox, is usually OK the first month, then it’s a mess finding. Some hire a developer (or a team of developers, depending on the size and scale of the organization) who would be responsible to run and maintain a central system of organization and communication, typically platforms like SharePoint and other money sucking black holes. Essentially, having a system developed or customized it’s not a solution that can grow alongside the growth of the HQ because the organization would have to reinvent the wheel each time, at great cost and pain. 

The other issue, of course, is that some internal communication requires standard access to online resources, tools, training sessions, which a custom-built intranet might be able to support, but for more direct communications, such as emails, effective features such as tracking need to be put in place. It’s not only about maintaining a hub where franchisees can access information but also about delivering, enforcing and encouraging compliance by ensuring that these all-important brand standards have been read and implemented. A cloud-based franchise intranet, such as is a solution that would address the needs of growth while providing features that take the strain off the company’s email system and helpdesk lines.

business ideas handwritten with white chalk on a blackboard

It’s a two-way street
When franchisee teams are given a home, we find that this allows for smarter collaboration in the backend which equals stellar customer engagement in the frontend, so to speak. Positive and consistent customer satisfaction and experience come from service quality, internal integration (or how well the franchisee has incorporated HQ practices, solutions and systems), internal communication (or how HQ communicates with franchisee) and the franchisee’s own identification with the brand and with HQ, all of which call for a certain level of commitment from the franchisee. This commitment, while remaining implicit, is often explicitly translated into customer experience. 

In our support of, and experience with, franchise organizations, we have found that franchisors, and the brand by extension, thrive when they retain the option to maintain contact with their franchisees at any time and thus support them with the day-to-day issues, in real time, without any lag. But the trickle-down effect of this is even more interesting. We’ve seen two notable effects that occur as a result of streamlining internal communication: one is that companies, since being able to maintain human working relationships with each other, place greater value on employee feedback and collaboration and are more willing to bring new ideas to the fore. Secondly, facilitating this change is the aspect of technology. Employing technology allows franchisees to build their own internal support systems independently while still “working remotely” and working across platforms in a more unitary fashion.

Returning customers has to like your Brand
The probability of customer repurchasing hinges on brand loyalty. And brand loyalty is not simply messaging that remains on point. Nor is it images that are the same across physical franchise locations. It’s all about the customer's experience remaining seamless and consistent. A customer’s intention to repurchase and continue to do so can be predicted by customer satisfaction. But the linchpin between the two is brand awareness. If brand awareness by a customer is high - that is to say, the customer is not only aware of what your brand stands for, believes in it, enjoys the product but also experiences the same essential motifs and signature interactions that characterize your brand, then franchisees can bank on establishing a positivecustomer experience that ensures a return.

In essence, none of these concepts - internal communications, brand awareness and customer satisfaction - are divest of each other. Rather, they are inextricably linked in set of operations that is quite organic. This makes sense, of course, since, at the end of the day, franchisees rely on the brand to build a relationship with customers. And, as such, franchisors, too, must first attend to the kind of relationship they build with their own franchisees before it can be translated into a high level of customer satisfaction and a positive customer experience..

Get the right tools for the job
A franchise intranet allows the perfect negotiation between an independent and innovative franchisee that is able to support and educate their own employees while remaining brand consistent and delivering an unparalleled end-user experience while still being able to access support, training, tools and changes franchisors provide to grow the brand and remain viable, profitable and functional. The right tools are easily available as an on-line cloud service. Take a look at 

For further insights on this, you might find this article interesting: "Does having the right tools improve a franchise’s internal communications capabilities?"