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Franchisee Power In Numbers

Posted on Date: Nov 17, 2014

Franchisee Power In Numbers

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Here at the Franchise Voice blog, we often discuss how the evolution of franchising over the past decades has significantly stacked the playing field in favor of the franchisor. Franchise agreements dictate almost every aspect of how the franchise should be managed and oftentimes doesn’t even promise franchisor support of the franchisee.

In a world where a franchisor holds virtually all the power, what is a single franchisee supposed to do if they feel they are being mistreated, disagree with the direction a franchise is moving in, or are not receiving the support they need to make their company thrive?

The truth is that many franchisors are loathed to listen to the complaints of a single franchisee, especially if the franchisee is not one of their top earners. This is the fundamental reason why franchise associations can be such a powerful tool for franchisees. A franchisor has virtually no incentive to sit down and negotiate with a single unhappy franchisee, but they cannot turn a blind eye when a significant portion of their franchisees petition and signal a need for change in one strong and unified voice.

The beauty of a well-run franchise association is that it aggregates the influence of franchise owners to protect the collective interests of the group. In this way the members can represent their shared interests much more effectively through a formalized support group rather than speaking as individuals. When a large body of franchise owners speaks as one, the franchisor feels significantly more pressure to sit down at the table and at least consider the concerns involved.

A franchise association can also mold a disparate list of issues and complaints from its membership into a clear and unified message backed by well-supported evidence and arguments. Offering a clear message to a franchisor along with reasonable solutions will make it much easier for a franchisor to seriously consider the issue and to agree to changes.

One voice, like a single candle in the night, is small and dim, but a hundred or a thousand candles all shining together can light the way toward shared prosperity.

Contact the AAFD to learn about creating an AAFD franchise association chapter.

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