Franchise Advisory Councils: What Are They & Why Do They Matter?

In November of last year, the corporate team at Sylvan Learning* redesigned training practices for managers running the centers. As this new method started to build out, however, the rising cost and time spent on training started to draw some concerns among franchisees.

That’s when the Franchise Owner’s Association stepped in and opened a dialogue with corporate to better the training curriculum. Through the ideas and firsthand perspectives of franchisees, the council and corporate team were able to work hand in hand to redevelop a strategy that lowered costs and was ultimately more efficient.

So what is a Franchise Owner’s Association? Commonly known as a Franchise Advisory Council, the group is comprised of franchisees from different regions of the country that are either elected or chosen to represent the interests of the system and essentially act as a bridge for focused communication between corporate and franchisees. Steve Beagelman, founder of SMB Franchise Advisors*, says that it’s imperative for a corporate team to keep an open mind and continuously ask for input from these key franchisees.

“Gaining feedback from franchisees that are respected and engaged in the system on strategies like brand development, new product rollout and marketing tactics can be very helpful,” says Beagelman. “You have to be willing to involve your FAC, engage them, listen to their ideas and be willing to adjust.”

Sylvan Learning is a great example of a brand utilizing this process to its advantage. The company has more than 750 locations throughout North America, leading to several hundred franchisees with varying opinions, concerns and ideas. With a company this size, it’s vital to have a council that can represent the voices system-wide, address pressing issues and bring about change. In total, the Franchise Owner’s Association for the brand is comprised of 135 members from different regions and a Board of Directors of 11 elected franchisees who all volunteer their time, according to Franchise Owner’s Association President Randy Way. The group has a membership fee of $600 per year, which goes towards administration costs, including travel and events.

Each month, the entire board meets in-person and four times a year, they travel to corporate headquarters to discuss the systemic concerns, recommendations, ideas, etc., with the company’s executive team. And in addition to acting as a voice for franchisees, the council also offers members several tools to learn about new trends, stay informed and connect with other Sylvan owners.

“We have an online discussion forum that is a great resource that holds so much information. Franchisees can easily post questions, exchange news and learn from the experiences of successful Sylvan franchisees,” says Way.

The group also hosts Lunch & Learn events that are very popular. Past seminars have focused on topics such as local marketing tips or new trends in SAT/ACT prep in 2017.

Wireless Zone is another nationwide brand that is open to constructive criticism and has greatly benefited from a well-represented, opinionated council that actively offers input to the decisions made at corporate.

“Our FAC was formed to be a transparent forum for the collective voices of our franchisees and our willingness to engage with and learn from our franchisees,” says Wireless Zone’s Director of Development Keith Dziki. “It’s a healthy exchange of franchise system concerns, issues, best practices, strategic planning, company review and a meeting where we can develop and discuss new and powerful ideas.”

Overall, a Franchise Advisory Council acts as a watchdog and support system for franchisees throughout the country. Without a group representing the entire system, communication between corporate and its franchisees ultimately becomes strained and ideas that would better the company go unheard.  Whether the company is big or small, it’s essential to have an organization where franchisees feel they can work together to voice concerns and better the company they’ve invested in.