Franchise Advisory Councils Are Crucial For a Healthy Franchise System

A franchise advisory council (FAC) consists of a select group of a brand’s franchisees, who work together to provide their franchisor with ideas on how to improve the overall system. Not a venue to air individual grievances, the FAC offers an opportunity for franchisees to propose what they believe can be done to improve the franchise system as a whole. 

When done right, FACs can be wildly productive and provide franchisees with a morale-boosting space to feel heard and respected. 

But FACs are also helpful to the franchisor, giving them a better idea of what franchisees are dealing with on a daily basis. So said SMB Franchise Advisors* President and CEO Steve Beagelman.

“It’s all about communication,” Beagelman explained. “When you’re growing a franchise brand, you want to get feedback from your franchisees. You want to understand what’s important to them. You want to make sure that there’s two-way communication. You want to make sure that you’re working on the things that make sense for the brand. And the best way to do those things is to communicate through an FAC.” 

At lawn-care franchise Spring-Green, the brand’s franchise advisory council is referred to as the National Advisory Council (NAC) and meets once a year. Spring-Green’s NAC is an integral part of the business, Director of Business Development Mark Potocki said. 

“Our NAC meetings are central to our ongoing business strategy as they bring together different representatives from the company to discuss the current wants and needs of our franchise owners and to discuss strategies to best address them,” Potocki said. “This annual meeting of the minds allows us to craft the best possible business plan for the upcoming year, to the best benefit of everyone involved with Spring-Green.”

Spring-Green franchisee Dan Hillenbrand joined the brand in March 2017 and owns and operates one territory in Edmond, Oklahoma. He is also one of the NAC’s leaders. Hillenbrand said he appreciates how the Spring-Green’s NAC allows franchise owners to have a voice in how the franchise system is growing as a whole. 

“It makes you feel like you’re being heard,” Hillenbrand said. “It allows you to at least go express your concerns, questions or thoughts about growth, whether it’s in marketing, or equipment, or branding, or whatever the case may be.”

All of the franchise experts and brand representatives we spoke to agreed: FACs can be a big morale booster for both the franchisor and franchisees. 

“At Spring-Green we know that knowledge is power,” Potocki said. “That’s why we cultivate an environment where the collective knowledge of the organization is shared with all. There are virtually no issues, questions or challenges any owner will face that haven’t been confronted before. By sharing information we can propel everyone’s success faster than it could likely be done on one’s own. Knowing this is a natural morale boost.”

So, what does the ideal FAC look like? For starters, it should include franchisees who are performing well and who understand the brand and what’s important for the overall company, said Beagelman. An FAC should also have a good geographic makeup and a mix of veteran franchisees and franchisees who are newer to the system. 

“If you’re national, you want to have representation throughout the country,” Beagelman said. “If you’re regional, you want to make sure you don’t have all your FAC members from one area.” 

At Spring-Green, the NACs are made up of selected personnel from the brand’s executive team and elected franchise owners from various regions of the country.

“Additional support center staff or third-party experts may be invited to participate in meetings as determined by the topics of discussion,” Potocki said.  

FACs are about what’s best for the brand, so they need to avoid things that are specific to individual franchisees. Franchisees must understand that participation in the FAC is about bringing discussing topics that are important to the system and working with the franchisor to figure out ways to address those issues. 

Examples of FAC-worthy topics, Beagelman explained, include employee retention, product quality and how to generate more revenue. “Those are all things that are good for the system and not just a specific individual franchisee.” 

Franchisees on FACs should also make sure to prepare ahead of meetings by communicating with other franchises in their region. 

“FAC members should really communicate, typically, with franchisees either in their region or whatever territory that they serve. This way, they can come back to the franchisors with feedback prior to the FAC meetings so that it’s not just their thoughts but those of the franchisees in their region as well,” Beagelman said. 

According to Hillenbrand FACs should also be careful to avoid secrets and hidden discussions. 

“The more open everybody is, and the more transparent everybody is on every level, the better focus everybody is going to have in trying to get to a common goal,” he said. 

And crucially, FACs should make sure they never lose sight of their organization’s mission.

“For us, our purpose outlines a noble cause, and our services are impactful to the families we serve, the environment and the franchise owners who operate as our strategic partners,” Potocki said. “We provide services that beautify our environment through higher standards of quality, service and professionalism. Keeping this mission in front of us gives us the bumper rails to stay inside our lane and make sure our decisions are in line with the 43 years of experience that have helped build the foundation for where we are today.”