How Do I Build Franchise Advisory Councils? A Guide for Franchisors

A franchise advisory council gives franchisors a way to hear directly from franchisees before making important decisions. When it's built with clear expectations and the right mix of franchise owners, the council can improve communication and provide valuable insight from across the system.

A successful franchise advisory council starts with a clear understanding of why the group exists and what members are expected to contribute. Council members should bring feedback from across the franchise system and help leadership understand what franchisees are seeing in the field, while recognizing that the final decisions still belong to the franchisor.

“The title of the council is very important: advisory," said Colette Bell, vice president of franchise development for Ace Handyman Services. “They're there as a sounding board for the franchisor. They're there to provide feedback and opinions, but they're not there to direct the franchisor. It's not the franchise directive council. That's a fine line because, if the franchisor isn't extremely clear about that when they form the first council and begin those first meetings, it's natural for franchisees to feel like this is their opportunity to tell the franchisor what it should or shouldn't be doing.”

Bell said setting expectations early helps avoid future frustration. Every new council member should understand that while their feedback matters, the franchisor is ultimately responsible for making decisions for the entire system and living with the results. Just as important are well-written bylaws. They should address member responsibilities, term limits, conflict resolution, vacancies and other situations before they arise. 

“I recommend gathering bylaws from other franchisors before creating your own,” Bell said. “Starting with a few examples is much easier than beginning with a blank page.”

Build a Council That Reflects the Entire Franchise System

Choosing the right members is just as important as defining the council's responsibilities. Bell said Ace Handyman Services evolved its approach as the franchise system expanded, eventually dividing the country into regions with two representatives serving each one. 

“One is elected by fellow franchisees, and one is appointed by the president of the franchise system,” she said. “We didn't always do it that way, but once we adopted that approach, it made a lot of sense.”

That combination provides broad representation while ensuring that experienced operators who may not campaign for the role still have an opportunity to contribute.

"Sometimes the franchisees who are the most knowledgeable and helpful aren't the loudest or most visible," Bell said. “They're busy running great businesses, so they may not get elected by their peers. If the president believes someone has valuable insight to contribute, the appointment process allows that perspective to be represented.”

Franchisors should also seek diversity beyond geography. A strong council should include both single-unit and multi-unit franchisees as well as operators with different strengths, whether that's technology, commercial business, residential services or operations. For example, Ace Handyman Services also uses staggered two-year terms so each region always has an experienced member who can help orient incoming representatives.

Create a Structure That Keeps Members Engaged

How often an advisory council meets matters just as much as who serves on it. At Ace Handyman Services, the council meets four times a year, with two in-person meetings and two virtual meetings. Bell said that schedule gives members enough time to discuss important issues without asking busy franchise owners to step away from their businesses too frequently.

As the company grew, it also found that committees made the advisory council more productive. Rather than spending an entire meeting focused on a single topic, council members lead committees focused on specific priorities.

“For example, technology became a major area of focus,” Bell said. “We asked two advisory council members to lead a technology committee, then encouraged them to recruit additional franchisees who weren't serving on the council. Those committee members gathered feedback from across the system and brought it back to the council.”

Each January, the company reviews its committees to decide which ones should continue, which have run their course and whether new priorities call for a different committee. That annual review helps keep the council focused on the issues that matter most.

Encourage Honest Feedback While Staying Focused on the Bigger Picture

Disagreement is inevitable within any advisory council, but that can be one of the group's greatest strengths. The goal isn't to reach unanimous agreement on every issue. Instead, it's to give franchisors a better understanding of what franchisees are experiencing in the field before major decisions are made.

"We tell council members from the beginning that we aren't going to agree on every topic, and that's okay," Bell said. “We want to hear their perspective because it helps us better understand what we're doing, why we're doing it and how we might improve it. We're also very data-driven. Opinions are valuable, but data carries more weight. If someone says, 'I've talked to franchisees across my region and 40% feel this way,' that's much more useful than one person simply saying they don't like something.”

While those conversations may not always change the final decision, Bell said they help leadership make better decisions for the system as a whole rather than reacting to individual opinions.

Practical Takeaways for Building Franchise Advisory Councils

Franchise advisory councils are most effective when they have a clearly defined purpose, balanced representation and a structured process for gathering meaningful feedback. 

Franchisors looking to build or improve a council should keep three best practices in mind:

• Clearly define the council's advisory role and establish bylaws in writing before the first meeting.
• Create balanced representation through a mix of elected and appointed members with different backgrounds, business sizes and areas of expertise.
• Keep the council focused by meeting consistently, using committees to address key initiatives and encouraging feedback grounded in system-wide data rather than individual opinions.

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