Open, honest and frequent communication between franchisees and franchisors is imperative in operating a successful owner-operator network. Franchise Advisory Councils (FAC) are a tool which facilitates involvement, consultation and participation.
In an environment where finding and retaining quality franchisees is difficult for most franchisors, it may come as a surprise that many FACs are failing to achieve their objective of developing harmonious relationships. Implementing and managing a successful and worthwhile FAC requires full franchisee and, importantly, franchisor support. If either party does not value and visibly commit to the process, it is destined to fail.
FACs fail to achieve their desired objectives for a number of reasons, including:
- Inappropriate level of leadership provided by the franchisor
- Failure to set strict guidelines around acceptable agenda items covered at meetings
- Allowing personal agendas or vendettas to be aired and discussed
- Failure to manage franchisee expectations on issues where a significant difference of opinion arises
- The number of participants is too large to manage an effective meeting process
A successful FAC requires more than just a sound constitution and prescribed meeting format. All participants must be clear on its objective and remove themselves from their single business mentality and take a holistic approach to the network. Participants should be chosen for their commercial savvy and ability to keep personal political motivations separate.
DC Strategy is the region’s premier franchising specialist with an experienced and respected team of specialist franchise consultants and specialist franchise solicitors. As market leader our extensive practical experience ensures our clients have access to the latest franchising know how, outcomes, trends and developments to grow a better and more valuable business.
19-Sep-2008