The Importance of Communication in Franchise Relationships
Failure in Communication
As the owner of a retail franchise food store, Belinda purchases supplies based on specials advertised nationally throughout the franchise system. Last Monday, she was surprised to find customers asking for specials she hadn't been informed of in advance. The franchise company failed to live up to the value-driven activity of communication.
Impact on Operations and Customer Satisfaction
In a franchise scenario, the company failed to uphold its task of communication. It did not provide timely information about the specials. Consequently, Belinda was unable to prepare in advance which could have significant impacts on the operation and customer satisfaction.
Importance of Timely Information
The franchise company failed to live up to the value-driven activity of communication. In a franchise relationship, the franchisor is expected to provide clear and timely information about various needs of the business, such as upcoming promotions and deals. This is crucial because the franchisee, in this case Belinda, relies on the franchisor's information to make purchasing decisions which can significantly impact the operation, profits, and customer satisfaction of the retail franchise food store.
Consequences of Lack of Communication
Because the information did not reach Belinda in advance, she wasn't able to purchase the necessary supplies for the specials, which could have resulted in lost sales and dissatisfied customers.
What are the consequences of the franchise company's failure to provide timely information to Belinda as a franchisee? The consequences of the franchise company's failure to provide timely information to Belinda as a franchisee include her inability to prepare in advance, leading to potential impacts on the operation, profits, and customer satisfaction of the retail franchise food store. Belinda may also face lost sales and dissatisfied customers due to the lack of necessary supplies for the specials.