The Franchise Advisory Council (FAC) is a key support and communication vehicle for franchisors. The council is a strategic planning body whose mandate should be to:
- forward-plan the company's growth,
- review new product and service offerings, and
- air franchisee / franchisor issues.
A well-developed franchise advisory council will provide strategic, operational and franchisee relations input to the franchisor and help reduce the risk of franchisee default and non-compliance.
Components of the Franchise Advisory Council
The FAC is ideally made up of:
The CEO of the company.
One other member of the company’s management team – usually the COO.
Franchisees selected from all regions in which the company operates. These franchisees should be the best performers who have the respect of their peers and are in compliance with the franchise agreement. The number of franchisees on the council will be dependent on the number of franchisees in the system. If you are in the initial phase of developing your franchise system, then name your first franchisee to the Council. As the system expands you can increase the ratio to one in five, ten, fifteen, etc.
Outside parties who have a stake in the continued success of the company. These could be major suppliers, major customers, or consultants. Limit these to one from each category, for example:
- One key customer
- One major supplier
- One consultant who can be either a lawyer, franchise consultant, or anyone whom the company determines may be of use both for their outside thinking but also to carry the discussion forward on a non-biased basis.
The council should meet quarterly by Skype or videoconference and at least twice a year face to face. The company pays the costs for these meetings.
The Advertising Council
- assisting the franchisor in developing national and regional advertising and promotional programs,
- setting national standards for all advertising and promotional programs, and
- monitoring compliance with and involvement in the company's charitable works.
The Advertising Council is made up of the head of the advertising department and one key franchisee from each region of the country. If the company operates in more than one country, a separate Council should be set up in each country. The Council should meet quarterly by Skype / videoconference or more frequently if required.
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