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ASK THE AFAWhat is the purpose of our franchisee association now that we’ve resolved our more contentious issues with the franchisor? Nothing about franchisee associations dictates that they must function in an adverse or hostile relationship with their franchisor. However, it is a sad, but true commentary on franchising generally that conflict is often the catalyst that brings about the formation of an independent franchisee association. Independent associations function best in representing the interests of their membership when a constructive and business-like collaboration can be maintained with the franchisor. Not surprisingly, this kind of harmonious working relationship is also in the best interests of the franchisor. All but the most egomaniacal franchisors will welcome the input of its franchisees in system affairs. Perhaps most importantly, an independent franchisee association informs franchisees. Empowerment of franchisees requires knowledge, both for the benefit of the franchisee in conducting its own business and to make collaboration with the franchisor possible on a professional basis in such areas as new product development, new store development, marketing of the system’s products/services, training, purchasing and ad fund issues, just to name a few. An association facilitates internal sharing of experience and information by participating franchisees. Sometimes this is all that is needed to overcome the isolation of franchisees and their resulting lack of knowledge. As the independent franchisee association informs participating franchisees, they in turn, become far better qualified to participate as equals with their franchisor in the various decision-making processes that affect the franchise system, from the most trivial, tactical issues, to the most profound strategic, positioning issues that affect the system. An association also facilitates the recruitment of competent and expert professional and legal advice and support for member franchisees in a wide variety of areas. This includes, but is by no means limited to, areas such as accounting and financial planning, legal, political activities, advertising, marketing and research. Finally, there is the collective, institutional memory of the franchisee community that can recall both the franchisor’s and participating franchisees’ actions from the past. Due to the nature of franchise agreements--which are almost invariably drafted unilaterally by the franchisor and which tend to become more restrictive with each succeeding year-- and the fact that existing franchise relationship laws tend to address the dysfunctions that affected franchising in the 1960’s, an independent franchisee association contributes enormously to continuity on the franchisee side of the fence. Many franchisee associations spend years staying organized merely for social events and /or local informational exchange gatherings once or twice a year. However, when a long-term or recurring problem arises, the association and its participating franchisees are placed at less of a competitive disadvantage when dealing with their franchisor because they are organized, they’ve communicated with one another regularly and are knowledgeable about past issues within their chain. The ultimate success of an independent franchisee association will depend upon the quality of the leadership the members are able to elect and on the solidarity the membership is able to maintain. These are both areas that are well within the control of franchisees themselves. Please send us your questions to include in future issues of Enews. Mail to info@franchisee.org. |
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AFA Enews - January 14, 2004 - Volume 2 Number 1 |
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American Franchisee Association |
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(312) 431-0545 |
