Franchise Advisory Councils

In this installment of the MegaDox.com Successful Franchising series, we look at the importance of the Franchise Advisory Council.

The Franchise Advisory Council

A key support and communication vehicle for franchisors is the Franchise Advisory Council (FAC). The council is a strategic planning body that should be used to:

• forward plan the company's growth,
• review new product and service offerings,
• vent franchisee / franchisor issues.

A properly designed and run FAC will provide strategic, operational and franchisee relations input to the franchisor and help reduce instances of franchisee default and non-compliance. A properly designed FAC is made up of:

1. The CEO of the company
2. One other member of the company’s management team – usually the COO
3. Franchisees chosen by the company from all regions in which the company operates. These franchisees are the best performers who have the respect of their peers and are in compliance with the franchise agreement. The number of franchisees on the council will be dependent on the number of franchisees in the system. If you are in the initial phase of developing your franchise system, then name your first franchisee to the Council. As the system expands go to one in five, ten, fifteen, etc.
4. Outside parties who have a stake in the continued success of the company. These could be major suppliers, major customers, or consultants. Limit these to one from each category, e.g.:

• One key customer
• One major supplier
• One consultant who can be either a lawyer, franchise consultant, or anyone whom the company determines may be of use both for their outside thinking but also to carry the discussion forward on a non-biased basis.

The council should meet quarterly by videoconference and at least twice a year face to face. The company pays the costs for these meetings.

The Franchise Advertising Council

The Franchise Advertising Council's responsibilities include:

• Assisting the company in developing national and regional advertising and promotional programs,
• Setting national standards for all advertising and promotional programs,
• Monitoring compliance with and involvement in the company's charitable works.  

The Council is made up of:

1. The head of the advertising department
2. One key franchisee from each region of the country. If the company operates in more than one country, a separate Council should be set up in each country. 

The Council should meet quarterly by videoconference or more frequently if required.

If you have questions about franchising or if you need franchising agreements and related forms, visit MegaDox.com.