Abstract
Purpose This paper aims to explore the inherent tensions of the franchisor‐franchisee relationship from the viewpoint of business strategy. It also aims to highlight seven areas of the partnership that can be developed to promote cooperation on a shared strategic direction that delivers improved business outcomes Design/methodology/approach The literature is reviewed and the author's extensive experience in franchising is drawn on. The Seven C Approach is discussed as a guide. Findings The paper finds that by adopting an approach based on communication, cooperation, consultation, collaboration, coordination, concession and competence franchisors and franchisees can work through their differences on strategy formulation and implementation. Practical implications The paper has real and immediate practical benefits for franchisors and franchisees in that it provides a seven‐step guide for improving the working relationship between the two. This will result in greater trust and better business outcomes. Originality/value This paper distills the theory into a compact, practical and easily implementable seven‐step process for improving the franchising relationship. The result is a useful guide for franchising businesses based on research and experience. A new strategy model is developed for practitioners and is presented here for the first time.