Crain’s Detroit Business

Franchises get in touch with fees and feelings

More support boosts franchisee's success

• October 21, 2002

Statistics show that 50 percent of all franchisors fail largely for the same reasons marriages fail: They didn't learn how to foster a partnership.

In this case, the spouse is the franchisee. And like a marriage, a successful franchisee relationship is two parts communication and one part support.

Troy-based Allegra Network L.L.C., formerly known as American Speedy Printing, learned that neglect can prove fatal. When it filed for bankruptcy in 1992, the company didn't understand that a franchisor's success relies on having happy franchisees, said Jerry Bergler, former vice president and CEO.