FRANCHISE RELATIONS
FROM COMMUNICATION TO INNOVATION: FRANCHISE ADVISORY COMMITTEES PLAY A CRUCIAL ROLE IN BUILDING STRONG AND SUSTAINABLE FRANCHISE SYSTEMS By Ali McElroy, CFE, Kaleidoscope Growth Advisors
A Franchise Advisory Council (FAC) is a franchisor-facilitated, consultative body in a franchise system consisting of franchisor and franchisee representatives who meet regularly to provide insights, feedback and recommendations to franchisor leadership.
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strong FAC is a valuable resource to enhance engagement and drive innovation in the franchise system and FACs play a crucial role in the success of a strong, sustainable franchise system.
Enhancing Communication
Enhancing communication between franchisors and franchisees is one of the primary roles of the FAC,
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helping franchisors stay informed on franchisee perspectives and supporting pro-active approaches to new initiatives and addressing challenges. For early-stage franchises, direct communication among franchisor leadership and a small group of founding franchisees happens naturally and informally. As the number and diversity of franchisees increases, the communication and operational needs of the franchise system change. An FAC provides an intentional and formalized structure for franchise engagement.
Why Start Early?
Starting the FAC early in the franchisor lifecycle creates a foundation for communication and engagement and a culture of fostering trust and transparency — all of which help the system navigate challenges and opportunities that inevitably arise as the system grows. As an early-stage franchisor, you may begin with a small FAC consisting of three to five franchisee representatives when you reach a dozen or more ownership groups in the network (which could represent a larger number of units in a system with multi-unit ownership groups.
Structuring the FAC
You have many options to tailor the approach and structure to the culture, stage and needs of your franchise system. FAC seats may be based on different characteristics within the system — geographic, single vs multi-unit, tenure, at-large or some combination of these options. Members