The importance and key elements of a successful Franchise Advisory Council

When you join a franchise, you become part of a network of business owners.

The importance and key elements of a successful Franchise Advisory Council

When you join a franchise, you become part of a network of business owners. Providing support and advice, Franchise Advisory Councils (FACs) are a select group of franchisees who serve as a voice for their fellow franchisees to the franchisor. The benefits of a FAC extend beyond improving the franchise system and can positively impact each franchisee’s experience. By sharing ideas, addressing challenges, and improving profitable growth, a FAC can help franchisees to influence the direction of the franchise, gain support and resources and boost engagement and satisfaction. A FAC is a powerful medium for franchisees to provide feedback and collaborate with the franchisor.

FACs are crucial to the success of any franchise model. They offer franchisees a platform to share feedback with the franchisor on critical business aspects such as operations, marketing, and product development. Here, Justin Nihiser, CEO of Code Ninjas, discusses the significance and key elements of a successful FAC. To ensure that the FAC effectively represents franchisees’ perspectives and offers valuable insights, there are several factors to consider when forming and operating a FAC:

Clear role definition

It is essential to establish a clear understanding of the FAC’s role, purpose, and powers within the franchise network’s governance and management structure. Both the franchisor and the FAC should value and respect each other’s roles and responsibilities.

Competent facilitation

An effective moderator is essential to ensuring that meetings are run efficiently and stay on track. They should be open to new ideas and able to keep the discussion focused on relevant topics. Additionally, consistent participation from franchise leaders is essential to ensure that meetings are productive and valuable.

Focus on results

The FAC’s primary goal should be to enhance the franchise’s profitability, competitiveness, and cooperation, rather than merely addressing grievances. The council should focus on identifying workable solutions and addressing significant matters that benefit the entire network, rather than just specific concerns.

Measurable outcomes: Members of the FAC should expect their input to be valued and appreciated by seeing their recommendations put into action. The franchisor should consolidate the group’s proposals and conclusions into a practical action plan demonstrating that the FAC’s opinions and suggestions are valued.

A FAC is a crucial platform for open and constructive communication between franchisees and the franchisor. By providing a secure environment for expressing concerns, the FAC facilitates valuable feedback to provide informed decision-making, driving growth and profitability for franchise owners. The collaborative focus of a FAC provides a unique opportunity for franchisees to approach sensitive topics proactively. Honest exchange of information builds trust and transparency between the franchisee and franchisor, fostering a healthy franchise relationship. As a member, you have direct access to the franchisor, and this dialogue is critical for the franchisor to gain valuable feedback from its franchisees.

Franchisees’ direct experience with the business model, franchise system, and operational processes makes their feedback critical to the success of the franchise. A good franchisor values and seeks input from its franchisees, recognising their role as the backbone of the business. By offering their honest experiences through a FAC, franchisees can directly influence aspects of the franchise model and operations, improving the offering for prospects.

Joining a FAC gives you a powerful opportunity to share your experiences and concerns with the franchisor in a collective environment. As a franchisee, you are the front-line representative of the business and have a unique understanding of the effectiveness of the business model and your consumers. By participating in a FAC, you can provide invaluable information to the franchisor that they cannot get from their corporate office.

Joining a FAC allows you to collectively voice your ideas, insights, and concerns, while providing franchisors with invaluable information from their most client-facing stakeholders. Additionally, you act as a mediator between franchisees and the franchisor, communicating their concerns as well as your own. You can help make more informed decisions that can benefit all franchisees in the network – strengthening your relationship with the franchisor and other franchisees in the network and being the voice for change for the franchise network.

Code Ninjas understands the importance of communication with their franchisees to strengthen the franchise network. Their FAC provides a two-way communication system that fosters constructive conversations and the sharing of new ideas, benefiting the franchise network and the business as a whole.

Justin Nihiser
Justin Nihiser