Franchise Management For Dummies (For Dummies (Lifestyle)) by Seid Michael H. & Mazero Joyce

Author:Seid, Michael H. & Mazero, Joyce [Seid, Michael H.]
Language: eng
Format: epub
ISBN: 9781119337232
Publisher: Wiley
Published: 2017-05-04T04:00:00+00:00

Franchisee associations

Unlike franchisee advisory councils, franchisee associations are usually independent organizations, made up of dues-paying franchisees that come together when no franchisee advisory council exists or if the council is not viewed as adequately promoting their interests. They may function like a council, but franchisee associations set their own rules, membership requirements, and agendas. Membership dues usually fund them, whereas the franchisor more often than not picks up the tab for its franchise advisory council.

Historically, many franchisee associations were started because of a systemic crisis. For example, the franchisor may have been on the verge of bankruptcy or introduced a radical new product, service, or standard into the system without adequate testing, a change in management may have occurred, or the franchisor may have dramatically revised the terms of its new and renewal franchise agreements. Franchisee associations have frequently also been formed on the verge of system-wide litigation.

Today, while many franchisors are leery and resist franchisee associations, other franchisors have recognized that an independent association is not a bad idea and may make a positive contribution to the system, as long as its leadership acts responsibly and listens to the legitimate concerns of its constituency. Many of these franchisors have cautiously developed procedures to include associations as part of the process to maintain and grow their systems. In some systems, the franchisee associations are granted specific rights under the franchise agreements.

For a franchise system to have both a franchisee advisory council and an independent franchisee association is not unheard of. Moreover, the lines between a franchisee association and a franchisee advisory council aren’t always clear-cut. Some groups have elements of both types of organizations.

Franchisee associations can be beneficial to both the franchisor and the franchisees. It takes work on both sides to make the relationship work. Although neither of the authors of this book is anti-lawyer (Joyce is, in fact, a very well-recognized lawyer herself, who works with franchisors, franchisees, and franchisee associations), the relationship between associations and franchisors works best when it is built on achieving results valued by both the franchisor and the association. Some lawyers — by training — can often change the dynamics ideal for a positive relationship. We guess it has something to do with their spending too much time at the bar.

There are many successful franchisee associations. The Coalition of Franchisee Associations (the CFA) is an association of franchisee associations with the mission “to bring franchisee associations together to share and exchange ideas.” It may be a good source of information if you’re interested in forming or joining a franchisee association. Check out www.thecfainc.com for more information.

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