Franchise Tutorials Franchisee

Tutorial 10: Intro to Franchisee Advisory Councils

Joining a successful franchise system means franchisees get the security of operating a proven business model with support and guidance from head office. And although franchisees follow the structure established by the franchisor, what you probably don’t know is that many successful franchise systems have something called a Franchisee Advisory Council (FAC).

Made up of a group of established franchisees, the FAC meets with head office executives two to four times a year to discuss business issues that impact all franchisees across the system.

Typically, FACs are organized by the franchisor with the intention of creating a formal channel of two-way communication with their franchisees. Topics discussed can include advertising, field support, operations, evolving market trends, and more.

Though final decision making remains with franchisor executives, FACs are an important way that you as a franchisee can share your input to help the business grow and voice any concerns you may have regarding the state of the franchise system. 

It’s important to know that franchise systems will differ on how they select which of their franchisees join the FAC. For example, some franchisors may choose to directly appoint franchisees while others form an election process where all franchise partners get to vote.

If you are selected to join the FAC it usually means you are a franchisee in good standing, have met your performance standards, and have been with your system for a significant period of time. Most importantly, you will have a positive attitude and are willing to put aside your own business goals to look at what’s best for the franchise as a whole.

Most successful franchises have a FAC in place, so be on the lookout for this while conducting your due diligence. If you invest in a system with a FAC established you’ll know right away that your franchisor recognizes and values franchisees’ needs, perspectives, and day-to-day contributions!

The opinions or viewpoints expressed herein do not necessarily reflect those of the Canadian Franchise Association (CFA). Where materials and content were prepared by persons and/or entities other than the CFA, the said other persons and/or entities are solely responsible for their content. The information provided herein is intended only as general information that may or may not reflect the most current developments. The mention of particular companies or individuals does not represent an endorsement by the CFA. Information on legal matters should not be construed as legal advice. Although professionals may prepare these materials or be quoted in them, this information should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought.

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