COUNCIL OF FRANCHISEES

What it is

Franchise networks need a structure to connect the franchisor closer to the network, exchange business ideas, and encourage franchisee engagement. In addition, the board ends up communicating the “network temperature” and level of satisfaction to the franchisor. It encourages people to adopt certain attitudes and provides a number of essential benefits, including:

  •       Co-creation – Allows the co-creation of solutions for the business, as it brings insights from the franchised units – a greater point of contact with customers – to the franchisor.
  •       It helps to focus on the profitability of the franchisee and the franchisor.
  •       Engagement – ​​Promotes the involvement of franchisees in the development of new products and also in the dissemination of the network’s best practices, such as local marketing actions, for example.
  •       Communication – Improve communication between franchisor and franchisees.
  •       Collaboration – This allows the discussion of problems with the intention of finding solutions that are beneficial to everyone.
  •       Transparency and representativeness of the network in decision-making.

How We Do It

The work of structuring the board goes through some important steps:

  •       Understanding the business model;
  •       Definition of the board’s objectives;
  •       Identification of franchisees that influence the network;
  •       Preparation of the bylaws of the franchisee’s council – rules, rights, and duties;
  •       Organization of the first board election;
  •       Conducting the first meeting and election of the board of directors;
  •       Support the board as an advisory member.

Why

A franchisee council is highly valuable for a network that has grown to the point where it requires interlocutors with other franchisees. This is a group of franchisees, usually individuals who are well-known in their regions and can speak for the franchisees’ requests to the franchisor. They also help with information transfer from the franchisor to the franchisees.

This is a crucial framework that supports the franchisor and aids in the management of the network. Its advising position aids the network’s direction as well as the franchisor’s decision-making priorities.

In addition to its moderating role, it serves as a crucial communication channel and a means of bringing experienced franchisees closer together, allowing them to share their experiences and feel like they are contributing to the company’s and brand’s success.

RESULTS ACHIEVED

An active and collaborative network with a voice that the franchisor hears from through its advisor interlocutors. The franchisor will have a law that regulates the board, instructions for the choice/election of directors, and best practices for this structure to be effective at the end of the board structuring project.

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