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Strength in Numbers: The Benefits of an Independent Franchise Association

Posted by Craig M. Morgan | May 19, 2018 | 0 Comments

          Franchisees can find strength in numbers.  Combining the strengths of multiple franchisees can offer greater leverage and negotiating capacity. 

              Two of the most common forms of franchisee organizations are a franchisor-appointed advisory counsel and an Independent Franchisee Association.  The purpose of this article is to provide an introduction and articulate benefits.

The (fundamental) Difference

            The franchisor-appointed advisory counsel is a group formed, and, ultimately, controlled by the franchisor. The intended purpose of the franchisor appointed advisory counsel is to act as a forum for franchisees to be heard and share feedback.

      An Independent Franchisee Association is controlled by the franchisee members.  An Independent Franchisee Association is formed outside of the franchise system.  Typically comprised of members of the same franchise system, the Independent Franchisee Association is free of franchisor control and influence.  As such, a Franchisee Association can provide greater freedom of association, discussion, and potentially power. 

The Similarity

            Both organizations are used to address franchisee-related concerns.  The goal of each is to allow for a collaborative environment in which franchisees can communicate and improve upon issues. 

The Purpose of an Independent Franchisee Association

            The Independent Franchisee Association leverages the collective interests of the franchisee-members. This allows for an increased ability to negotiate with the franchisor. The Franchisee Association solely represents franchisees, free of influence from the franchisor.

      Typically, a franchise attorney represents an Independent Franchisee Association.  The attorney will attend meetings and help franchisees navigate complexities and changes in the workplace, thereby improving conditions.  The franchise attorney will negotiate with the franchisor on behalf of the Franchisee Association.       

       Franchisee interests are frequently opposed to franchisor interests.  Organization yields power through unification of interests- therefore, the more organized a group of franchisees are, the greater the ability to negotiate with the franchisor and affect positive change.

Contact Providence Law for more information.

Providencelawcarolina.com | 704.412.9450

On Location in Charlotte and Lake Norman 

Providence Law serves clients throughout NC and beyond.

We counsel Franchise clients throughout the U.S. 

About the Author

Craig M. Morgan

Craig Morgan's practice areas include business and corporate law, franchise law and general corporate counsel. He has represented a variety of businesses including franchise businesses and independent, privately held companies. Craig has represented clients in negotiations and ...

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