Resolving Conflict in Franchising

The relationship between franchisees and franchisors ebbs and flows. In FBR’s 20+ years of research and working with more than 1,300+ franchise systems, we’ve identified a number of reasons for this. At times it’s based on the stage the franchisee is in: Are they brand new to the system, drinking the brand kool-aid, and loving everything you do to support them? Or are they 5 to 7 years into the business, trying to remember why they write that royalty check each month. 

Other factors that can impact the franchisee/franchisor relationship are how aggressively the franchisor is growing. Or how well they’re communicating when the corporate team is spread thin. Or how well the franchisor handles change management, rolls out new initiatives, or owns mistakes when they happen. Inevitably, there will be times when conflict in franchising arises. What matters is how you manage it.

How to Manage Tough Conversations in Franchising

It’s business and people—of course things happen. With so many needs and emotions, conflict in franchising is inevitable. Differences in priorities, performance, or expectations can trigger frustration on both sides. But when approached intentionally, conflict can build stronger relationships, foster accountability, and lead to smarter business decisions.

Start with clear rules within your organization for how you expect people to work together. Use this sample communication policy as a starting point to create a code of conduct. 

Additionally, use this step-by-step framework for managing conflicts when they inevitably occur. Having a clear agenda for approaching tough conversations will help ensure franchise leaders and franchisees are aligned, respected, and heard when facing challenging conversations.

Conflict Resolution Framework for Franchises

Ahead of the Meeting

1. Align Expectations

• Share the agenda in advance. Include topics, desired outcomes, and time allocation. Make sure all parties agree.
• Flag the hard stuff. Let participants know which conversations might be uncomfortable or emotional.
• Ask for input. Give all parties a chance to add their concerns or questions to the agenda.

2. Set Ground Rules

• Agree to respectful behavior: no interruptions, sarcasm, or personal attacks.
• Remind everyone to come prepared to listen to understand, not just to respond.
• Make it clear that building relationships is a shared priority.

3. Define Meeting Roles

• Who is leading the meeting?
• Who is documenting action items?
• If there are stakeholders not present, who will communicate with them?

During the Meeting

1. Lead with Empathy

• Acknowledge tension or emotions upfront.
• Name the goal: to move forward productively, even if you don’t agree on everything.

2. Listen to Understand

• Validate the other person’s concerns: “I hear that you’re frustrated.”
• Use neutral, fact-based language.
• Ask clarifying questions.

3. Be Clear and Direct

• Stick to the agreed agenda.
• Use “we” language to reinforce partnership.
• Don’t sugarcoat, but don’t escalate. State facts, data, and impacts.

4. Manage Emotions

• If emotions escalate: Pause. Take a breath. Name what’s happening.
• Use trust-building phrases, e.g., “Let’s figure this out together” or “Help me understand what you need”.

We recommend 12 Phrases that Build Trust in High Stakes Moments, by Dr. Carolyn Frost as a guide.

5. Wrap With Action

• Recap decisions, commitments, and next steps.
• Assign owners and timelines.
• Ask, “Is there anything we missed or misunderstood?”
• End with gratitude and a reaffirmation of the relationship and commitment to each other.

After the Meeting

1. Send a Summary

• Bullet-point summary outlining next steps, owners, and timeline to complete.
• Include any supporting data, context, or resources discussed.

2. Follow Through

• Deliver on the commitments made.
• Hold others accountable (kindly but consistently).
• Communicate early on if priorities shift or deadlines can’t be met.

3. Keep the Connection Alive

• Check in periodically: “How are things going since our last conversation?”
• Celebrate any wins, progress, or effort.

Be Proactive, Not Reactive

No franchise system is immune to challenges—but the best brands are proactive, not reactive, when it comes to managing relationships. Regularly surveying your franchisees can uncover early warning signs of dissatisfaction, communication breakdowns, or misaligned expectations before they escalate into bigger issues. 

By using feedback as a tool for continuous improvement, franchise leaders can identify patterns, strengthen trust, and address potential areas of conflict in franchising before they take root. In the end, open dialogue and data-driven insights don’t just prevent disputes, they build the foundation for a healthier, more resilient franchise network.

Franchise Business Review surveys thousands of franchisees each year to help leading franchise brands gather actionable insights from their franchise network. Schedule a demo today to see what we can do for you.

Related Content

The CEO’s Guide to Creating and Maintaining a Positive Culture in Franchising

Despite its critical importance, culture is frequently overlooked by leadership. This essential guide provides practical advice for franchise leadership teams for creating and  maintaining a culture that leads to greater productivity and profitability.

DOWNLOAD NOW