FRANCHISE ADVISORY COUNCILS
Structuring for ongoing success

Every franchisor tells you that the most important single factor in their company's success is the relationship they have with the franchisees. This relationship is like a partnership, or a marriage - the two parties are dependent on each other for support, encouragement and mutual achievement. Rewards are shared.

Good relationships are built up over time as mutual trust and respect grows between the parties, and this cannot be legislated for. Nonetheless, there is one formal structure which can be put in place which will not only help develop good relationships but will also make the whole system stronger and quicker to respond. This is the Franchise Advisory Council.

What is a Franchise Advisory Council? A Franchise Advisory Council is a formal group or committee, organised by the franchisor, comprising a representative cross-section of franchisees and key franchisor officers. The Franchise Advisory Council meets regularly to discuss issues that affect the franchise system, and often acts as a sounding board for initiatives intended for system-wide benefit.

Structure and Timing
Every franchise system should be prepared with the provision to implement a Franchise Advisory Council. However, the optimal time for implementation will depend on a number of factors relating to the individual franchise system.

The Franchise Advisory Council should be governed by a set of rules, and there are a number of key structural decisions that need to be made. Examples include:

• Obligations and scope of the FAC
• Meeting protocols and processes
• Who can be a member and how they are elected
• Location and timing of meetings
• Who pays what expenses

The goodwill and co-operation achievable through the development implementation and management of an effective Franchise Advisory Council is immense.

Franchize Consultants (NZ) Ltd has assisted a number of franchise systems with the development of Franchise Advisory Councils.

Phone or email Win Robinson today (09 523 3858), and have Franchize Consultants (NZ) Ltd determine the most optimal timing and structure for your FAC.

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