Creation of a franchisee association, and the benefits of franchisee associations

It would be difficult to overstate the benefits that franchisees can obtain by the existence of a franchisee association for their franchise system.  These substantial benefits include: coordinated communication between franchisees; a sense of “belonging” rather than being isolated;  consideration of the strengths and weaknesses of the franchisor’s system from the franchisee’s perspective;  retention of legal counsel knowledgeable regarding the franchise system, the concerns of franchisees, and the franchisor’s management personnel and counsel; increased leverage and credibility in discussions with the franchisor; synergies of developing improvements to the franchise system that will benefit both the franchisor and the franchisee network. 

    Although some franchisors actively promote the creation of a franchisee association for their networks,  many franchisors, unfortunately,  perceive franchisee associations as, at best, a vehicle for “trouble-making” and, at worst, a threat to their system.  Such a perception is misplaced.  If franchisors promote the creation of a franchisee association substantial credibility is created by the franchisor that will almost certainly promote, and result in, an increased level of communication and trust between the franchisor and its franchisees.  If franchisors attempt to frustrate the formation of such an association, given the nature of “social media” today  a grouping of very unhappy franchisees will almost certainly form to address franchisee complaints  when they arise.  The unhappy franchisees will be the “core” organizing group of such an association, and problems that have festered in the past will be the focus of the group, resulting from the beginning in a militant association that will greatly increase communication problems for franchisors. 

In any case, the cooperation of the franchisor is not critical to the creation of an association by franchisees.  Such an association can be incorporated, or unincorporated.  Unincorporated associations is the norm.  It need not be “formal” in its organization.  A beginning “core” of franchisees can create the association.  If individual franchisees are concerned about alienating the franchisor by being involved in the creation of an association, legal counsel can be retained to do so, while keeping the indentity/participation of the initial organizing franchisees confidential from the franchisor.  In conjunction with the “core” franchisee group, counsel facilitates the creation of the association, creation of enrollment documentation, initial communication with the franchisee network, and all other administrative aspects of association creation, while maintaining the confidentiality of the involvement of that “core” group, and the identity of association members.  The “core” group can form the initial governing body of the association, subject to later organizational efforts as the association grows.

Each franchisee network should therefore have a franchisee association to support, and advance, the needs and concerns of franchisees.