Once in a while, problems occur, or issues arise, between franchisees and their franchisor. This can happen in even the most successful franchise system. Fortunately, many franchisors provide you with a franchisee advisory council (FAC) or franchisee association to aid in communication and help you resolve (or even avoid) disputes. Any franchise system that lacks one of these organizations should probably have one.

Both FACs and franchisee associations give you the ability to make recommendations to the franchisor with respect to matters of operation, suggested improvements, advertising programs and expenditures, group benefit programs, group promotional programs, products and services, inventory, supplies and suppliers. They can also provide a valuable, focused forum through which you can help the franchisor determine changes to the franchise system, especially when those changes directly impact you and add to your expenses.

Franchisee advisory council

A franchisee advisory council is a body of franchisees, elected or appointed by their peers to act as representatives to the franchisor. These individuals may represent the entire membership or only other franchisees within a designated region. A good FAC allows for discussion and feedback between franchisee representatives and the rest of the franchisee network through reports, newsletters and meetings.

Franchisee associations

Franchisee associations are usually more structured than advisory councils. They may schedule franchisee meetings, elect their own directors and/or appoint officers, e.g. a president, secretary or treasurer. They may also have a more formal process for input and involvement from the overall franchisee body, such as annual elections of directors and/or officer appointments. As a result, franchisee associations can more actively represent your interests to the franchisor and may be better equipped to accomplish change within your franchise system.

There are many reasons a franchisor or its franchisees might choose one of these organizational types over the other. If your franchise system is smaller and more informally run, an FAC may be preferred, as it reflects the style of communication your franchisor already employs. Similarly, if your franchise system is larger or more structured, a franchisee association may be most appropriate.