Whereas the franchisor-franchisee relationship may be like a parent-child relationship, the franchisee-franchisee relationship has a different dynamic. This one is more like a sibling relationship. Brother and sister franchisees are on a more equal footing. They can be distant or close, rivals or friends. In the best case, they know how to work together to build a strong brand. Like the franchisor and its franchisees, sibling franchisees are interdependent, and their relationship must be built on trust.

This relationship, in some cases, can be quite competitive. The brother and sister franchisees may develop a sort of sibling rivalry. One franchisee may feel that another is getting preferential treatment from the franchisor, such as better territory or more support.
Franchisees should note that the success of one unit will enhance the image of all units. Even if brother and sister franchisees are in close proximity, they shouldn’t feel threatened. A large exclusive territory doesn’t always equal success, and a high number of sibling franchisees clustered in one area doesn’t mean that there won’t be enough customers to go around. Although this is often confused with cannibalization, it isn’t. In many cases, this strong presence in one area will help build the brand and will actually increase the franchise’s customer base. So, even if a franchisee?s exclusive territory is small, it shouldn’t be threatened by the nearness of a sibling franchisee.

In fact, franchisees should see their successful sibling franchisees as a source of support. For example, when just starting out, a new franchisee could claim one as a mentor who can provide guidance.

In fact, many franchisors have set up formal mentoring programs as part of their training package. Even if done informally, franchisees should always offer their support to others in their system.

Another reason why franchisees should be grateful to have successful sibling franchisees is that their success will enhance the image of the brand and reflect on fellow franchisees. After all, if a customer knows that she will get superior service at the nail salon near her home, in a pinch she’ll check out the sibling hair salon near her office.

Financially, franchisees will also benefit from the success of their siblings. All franchisees have the same task to establish the brand name as the dominant one in the market. More sales mean that more money is sent back to the franchisor, which can be spent on developing the entire system. In addition, more money will be sent back to the franchisor for national advertising, too. And the regional advertising pool will also swell from the contributions made by successful franchisees. You’d be smart to recognize this advantage.

Therefore, brother and sister franchisees should get to know each other and band together. They can set up regular networking meetings to discuss the local climate and how they can increase their customer base. They may want to do additional promotions above and beyond their usual marketing efforts, such as sponsoring charitable events or hiring a local public figure to endorse their brand.

Read more articles on Franchise Opportunities Guide.