It would seem that no-one else brings as much pragmatism to their thinking about Australian franchise business as Jason Gehrke does.
In this balanced and thought provoking editorial he explores the question “Do franchisors run different businesses than their franchisees?”
I was particularly taken with the following statement, that concisely describes the mutual reliance in the effective franchisor & franchisee relationship “If the franchisee’s business underperforms, it follows that one party will likely hold the other accountable for the underperformance. Either the franchisee did not uphold their end of the bargain by serving customers properly and in accordance with the system, or that the franchisor did not uphold their part of the deal by providing a business system that adequately minimised risks to the franchisee.”
If this mutual reliance relationship does exist then surely this must also have the effect of reducing the risk of franchisee failure.
Elcano is extremely fortunate to have Jason Gehrke as a member of our Advisory Panel.