Setting up the franchise council

What is a franchise council?

The franchise council is the central advisory body between the franchisor and the franchisees. A franchise council is often established when the number of franchisees increases to the point that central consultations become inefficient. A large group of franchisees with many opinions makes it challenging to make decisive decisions. The franchise council consists of representatives from the central organization and representatives of the franchisees. All franchisees can still provide input, but through the franchise council. The advice can cover virtually all aspects of the franchise formula: formula policy, marketing & promotion policy, improvement management, expansion, developments within the field, product innovations, etc.

Frequency of franchise council meetings

The franchise council is convened at least four times a year in most franchise organizations, often chaired by the franchisor. Depending on the pace of change within the formula and the market, a different frequency may be more appropriate. A franchisor can also engage a third party to take on the chairmanship. In this meeting, the franchisor among other things explains the policy pursued and future plans. The franchise council typically functions as a policy advisory board where information is exchanged. The final decision-making authority always lies with the central organization of the franchisor.

Franchise council regulations

The functioning of the franchise council is ideally laid down in regulations, usually drawn up by the franchisor in consultation with the franchisees. These regulations cover, among other things: composition and number of members (franchisees and franchisor), (re)appointment of council members, election procedures, their authority and appointment terms, meeting topics, meeting frequency, method of recording, decision-making process, and communication about it.

Preparatory committee

A preparatory committee is often set up when it is decided to establish a franchise council. Initially, it is announced at a central franchisee meeting that there is a desire to set up a franchise council. Through this channel, franchisees can indicate whether or not they want to be part of the committee. With the cooperation of the preparatory committee, the franchise council regulations are developed. Ultimately, all franchisees will cast their vote through a survey on whether the franchise council regulations are approved.

The franchise council election

If the franchise council regulations have been approved by the majority of the franchisees, the election can begin. There will first be a period in which franchisees can nominate themselves for the franchise council. Then candidates have the chance to pitch themselves; why are they suitable for the franchise council? The election process ensures that the franchisee representation has good support within the group of franchisees. During the voting (online or at a franchisee meeting), the final franchise council is chosen and installed.

A successful franchise council

As you can see, there is more involved than just finding franchisees who want to enroll in the franchise council. When establishing a franchise council, Koelewijn & Partners ensures that all the conditions for success are met. Interested? We are happy to help!