Franchisee Advisory Councils

To help ensure that franchisors are attending to their many franchisees, many have set up support structures that allow franchisees to have input into the franchise system’s operations. Some franchisors create franchisee advisory councils, or FACs, which take care of franchisees’ concerns and provide a forum for discussion.

FACs grew out of the recognition that franchisors and franchisees should have clear channels of communication. FACs rarely have the power to set policy, but they collaborate in policy making by providing advice and consent. They can help identify franchise opportunities and problems presented in franchise outlets. After all, the franchisees are on the front lines of the business and experience the effects of decisions made by the franchisor. There is wisdom in listening to those who interact with the customer daily.

To be effective, a FAC should be fairly independent; it shouldn’t uniformly agree or disagree with the franchisor’s wishes. Those in the franchisor’s organization should listen to the franchisees’ ideas and criticisms, and the franchisor must follow through on the promises that are made and respond to every issue raised. Both the members of the FAC and the franchisor’s staff should see this forum as a way to problem solve, not just register complaints.

FACs can be set up in a number of ways, and they usually evolve according to the needs of each franchise system. Franchisees tend to be sceptical about the effectiveness of a FAC, so members should be patient with their progress. Members can be selected in a number of ways, but they should be elected from the field at large. Terms should be staggered so that there’s continuity, although there should be some sort of term limits so that there’s always new blood in the system. The meetings should be scheduled regularly and should be accessible to all members.

In addition, franchisors should show that they’re willing to contribute to the success of the FAC. They should allocate resources for it, such as funds, staff, and administration. The franchisor should also pay the travelling expenses for the members, some of whom may have to come a long way to attend the meetings.

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