Does your franchise association need support?

Franchisees and franchisors consult with each other. When a franchise organization becomes larger, there arises a need for consultation between the franchisor and a collective of franchisees. This first takes place in an informal consultation and later in the 'franchise council', also known as 'franchise consultation' or 'central consultation'.

Franchisees often gradually organize themselves into a franchise association. This creates a so-called 'formal entity' opposite or alongside the franchisor. The association is a democratic body with an elected board that speaks on behalf of the affiliated franchisees. Individual board members then bear responsibility on behalf of the affiliated franchisees.

However, franchisees often have insufficient time and/or experience with all the formalities involved. Consider statutes, regulations, annual reports, and for example, separate VAT returns. The board of the association is also confronted with complex issues that are economically or legally complicated. Or with issues on which franchisees may have different opinions among themselves. In such cases, external support can be extremely useful.

Koelewijn & Partners has many years of experience in assisting franchise councils and franchise associations. There are three basic formats, all possible as an independent party:

• Chairperson of the association
• Advisor of the franchise association
• Chairmanship of the central consultation with the franchisor

Chairmanship of the franchise association

As chairperson, we lead the board meeting(s) and the annual meeting of the franchise association. We can also handle the documentation of these meetings. Our tasks typically include:

• Preparing the meetings
• Telephone pre-discussion
• Sending invitations
• Leading the meetings
• Taking minutes of the meetings
• Writing up the minutes
• Sending minutes to the members
• Monitoring decisions
• Maintaining contact with the members and the board of the association

Our role in this option is primarily focused on technical or independent chairmanship, process support, and documentation of meetings. An important part of the task of the independent chairperson is often to enhance connections among the franchisees.

Advisor of the franchise association

If the board wishes and/or can execute the chairmanship themselves, it is also possible to enlist Koelewijn & Partners as an independent advisor for the franchise association. There can be various reasons why it is beneficial to hire an independent advisor, such as:

• Differences of opinion exist within (members of) the franchise association
• Certain problems within the franchise formula remain unresolved and the board wonders about what is reasonable and fair
• The board seeks a sparring partner with more experience on how to proceed in board consultations with the franchisor
• There is a need to renew the franchise collaboration, where there are conflicting interests between franchisor and franchisees and/or among franchisees themselves
• There is a temporary need for extra expertise on specific franchise subjects

These components may also be part of the independent chairperson's responsibilities as described earlier, depending on the agreements made.

Chairmanship of the central consultation

It often occurs that the franchisor and franchisee representation find it difficult to focus both on content and process during consultation meetings. Or that the result of the consultation is minimal despite all the time invested. An independent, knowledgeable chairperson can be a solution. This applies, for example, if the central consultation has already been running stiffly for some time. But also if parties simply prefer to 'independently outsource' the chairmanship and documentation. A significant advantage of such a role is that the independent chairperson can, for instance, mediate between the franchisee association and franchisor.

Practical and thorough cost savings

It cannot be said offhand which basic form is best for your franchise organization. An introductory meeting is necessary for this. Our years of experience with consultations between franchisors and franchisees show that structural support not only saves money but primarily saves significant amounts of money. Especially because:

• There is consistent follow-up of consultations
• Time is used more effectively and efficiently
• More concrete results are achieved
• Better communication and explanation can often prevent higher legal costs
• The advisor or independent chairperson can function as oil in the machine

It is clear that both the franchisees and the franchisor benefit from professional consultations. In practice, it is often visible that the franchisor, depending on the form of support, often contributes financially to professional consultations to varying extents. In short, if your consultation could use a push or more, get in touch with us.