Franchise Advisory Councils: What Are They & Why Do They Matter?

A Franchise Advisory Council (FAC) is a group of franchisees from different regions who are elected or chosen to represent the interests of the franchise system. They act as a bridge for focused communication between corporate and franchisees.

• The FAC at Sylvan Learning was instrumental in redesigning the training practices for managers running the centers.
• The rising cost and time spent on training were concerns among franchisees, but the FAC was able to work with corporate to redevelop a strategy that lowered costs and was more efficient.

Steve Beagelman, founder of SMB Franchise Advisors, emphasizes the importance of corporate teams keeping an open mind and continuously asking for input from key franchisees.

• Gaining feedback from respected and engaged franchisees on strategies like brand development, new product rollout, and marketing tactics can be very helpful.
• Corporate teams must be willing to involve their FAC, engage them, listen to their ideas, and be willing to adjust.

Sylvan Learning has a large FAC with 135 members from different regions and a Board of Directors of 11 elected franchisees who volunteer their time.

• Each month, the entire board meets in-person, and four times a year, they travel to corporate headquarters to discuss systemic concerns, recommendations, ideas, etc., with the company's executive team.
• The council also offers members several tools to learn about new trends, stay informed, and connect with other Sylvan owners.

The FAC at Sylvan Learning has an online discussion forum where franchisees can post questions, exchange news, and learn from the experiences of successful Sylvan franchisees.

• The group also hosts Lunch & Learn events that are very popular, focusing on topics such as local marketing tips or new trends in SAT/ACT prep.

Wireless Zone is another nationwide brand that has benefited from a well-represented, opinionated council that actively offers input to the decisions made at corporate.

• Their FAC was formed to be a transparent forum for the collective voices of their franchisees and their willingness to engage with and learn from their franchisees.
• It's a healthy exchange of franchise system concerns, issues, best practices, strategic planning, company review, and a meeting where they can develop and discuss new and powerful ideas.

Overall, a Franchise Advisory Council acts as a watchdog and support system for franchisees throughout the country. Without a group representing the entire system, communication between corporate and its franchisees becomes strained, and ideas that would better the company go unheard.