5 Signs of a Successful Franchise Advisory Council

By John Francis, Next Level Franchise, and Eric Stites, CEO and Managing Director, Franchise Business Review

A Franchise Advisory Council (FAC) is a committee of individual franchisees, organized by the franchisor. The group provides feedback and ideas to the franchisor on how to improve the system.

A successful Franchise Advisory Council is an interactive group that provides structured collaboration between franchisor and franchisees. It serves as an effective representation of the franchisees’ perspective to corporate management.

But in order for the FAC to truly represent the franchisees’ voice, the group itself has to function effectively, which is dependent on the practices and culture within the group to position both the FAC and the franchisor for success.

If you have an FAC in your system, look for these five indicators to determine if it is running successfully.

What are the risks and benefits of Franchise Advisory Councils? Learn more about the pros and cons of implementing an FAC.

What to Look for in a Successful Franchise Advisory Council

1. A competent chairperson or facilitator

This person is responsible for ensuring the meetings are run effectively and everyone has the opportunity to have a say. An effective facilitator keeps things moving, agenda-focused, and remains open to new topics as they come up.

2. Clarity over the purpose, role, and powers of the FAC

Everyone in the group should understand how the FAC fits into the overall governance and management structure of the franchise network. An effective FAC is respected as an important part of the organization. At the same time, make it clear that the FAC is advisory only, and is not intended to provide franchisees a veto over franchisor decisions. By listening and taking FAC views into account prior to making decisions, you’ll go a long way toward building trust and value with the FAC and the system as a whole.

3. Well-prepared agendas

The process for gathering agenda items should not be onerous on the members. Give care to how these agenda items are prepared for discussion in meetings. Meeting facilitation and sequencing of topics needs to be carefully handled. Shannon Wilburn, co-founder and former CEO of Just Between Friends, created a set of 10 questions that need to be answered before a topic can be added the the FAC agenda. The purpose is to ensure that it meets the criteria for discussion, including why it needs to be discussed, who will be impacted, proposed recommendations, and action steps required.

4. Participation of senior franchisor executives

Successful FACs have consistent meeting participation from franchise leaders who attend with an open mind, candor, and the willingness to listen to the views presented. Conversely, they don’t overreact to or defend personal attacks or criticisms.

5. A focus on meaningful business improvement

The purpose isn’t be about resolving differences of opinion and hearing gripes. It’s about improving franchisee profitability, collaboration, and satisfaction. At times, pent-up individual frustrations are aired, but they should be resolved as quickly as possible. This ensures the meeting’s main focus is on meaningful solutions and dealing with challenges for the broader system.

If you don’t have an FAC in place, or you need help getting your FAC back on track, now’s the time to get started. Implementing or reinvigorating an FAC doesn’t have to be hard, but it does have to be planned  thoughtfully with long-term goals in mind to be effective.

Request a Free FAC Workbook

Our FAC workbook walks you through how to implement an FAC that contributes to the success of your franchisees and the overall performance of your brand.

Request a free copy of Building a Franchise Advisory Council that Gets Results for a step-by-step guide to:

• What you need to know before implementing an FAC, including defining goals, setting expectations, identifying FAC members, and communicating the plan.
• Creating the FAC format and agenda, launching, setting ground rules, and managing the process.
• Keeping the FAC on track, making adjustments, and expanding the opportunity and value over time.

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