#1: Be transparent with your decision-making processes. Don't leave franchisees guessing how you arrived at your strategies or wondering what will happen next. When there are gaps in information, people inevitably fill these with the worst possible scenarios. Transparency also helps avoid arguments that a decision is made arbitrarily or dishonestly in the context of good faith obligations. 

#2: Respond to franchisee questions and concerns. Create well-organised open forums to gather what's on people's minds and be willing to answer these questions in a factual, empathetic and direct manner. Responses need to be truthful, the whole truth and create a truthful impression. Otherwise, there can be consequences in terms of issues such as misleading or deceptive conduct. Consider putting things in writing so you can prove what was (and was not) said. 

#3: Clearly explain why these initiatives matter. Provide a compelling explanation on the background and the short-term and long-term benefits based on the things that matter to franchisees, e.g. more profit, better customer experience, less stress. Again, responses need to be truthful and accurate. Most legal claims relating to change management are based on statements made by management during the change management process. 

#4: Brief and prepare the franchisor team first. Ensure the entire head office team is on the same page before launching a change to your franchisees. If your team is uncertain about what's going on, how can they lead effectively? You could consider training in legal risks as part of the preparation. In complex matters having scripts and FAQs can be helpful. 

#5: Ensure there are regular and varied updates. People often need to hear things several times and in different ways before they take notice. Address the stage you are at in the process, as well as current challenges and how these are being addressed. Failure to communicate is a significant contributor to the escalation of disputes. 

#6: Bring in third-party providers or speakers. Sometimes hearing a different perspective from someone on the outside can have more impact on your message.  

#7: Identify early adopters and brand champions. Provide opportunities for franchisees who have experienced the benefits of the change to share their experience with others. Disaffected franchisees are usually more readily influenced by their peers than by franchisor management. 

#8: Seek feedback from longer-serving franchisees. Use advisory groups and trusted franchisees as sounding boards on the nature of new initiatives and the best way to communicate these. Ensure the selected franchisees have credibility within the broader network. Ensure the representatives on your advisory group are genuinely representative and are not seen as captive to the franchisor. Listen carefully to their suggestions and consider if they can be implemented. If not, or if you don’t agree with the suggestions, explain why.  

#9: Use case studies on successful execution. Create videos, panels and short presentations on how franchisees have achieved great results, including important lessons along the way. Just make sure the case studies are accurate, so they cannot be used as a basis for a claim that franchisees were misled. Remember – truth, the whole truth and a truthful impression. 

#10: Share the ‘why’. Explain how proposed changes support the purpose and vision for the business, and how these will help to make a positive difference to all stakeholders and the communities you serve. 

(This material was provided by Greg Nathan, Franchise Relationships Institute, and Norton Rose Fullbright.)