Franchise Association- Tremendous Asset to You as a Franchisee

“Can a franchise Association save my business?”

They can, they have and they will.

A bold statement? Maybe it even sounds a bit preposterous? I might agree with you if I had not seen it happen firsthand.

I rarely hear a franchisee candidate talk about a franchise Association. I suppose it makes a lot of sense as you’re looking at getting into a system. You’re thinking about costs, income potential, risks, fear, industry, number of units and location, etc. Folks are not typically thinking that far down the road. But boy it makes a difference in the long run.

As the Executive Director of the dominos franchisee association for 11 years, I remember getting a call from a desperate franchisee early on a Friday afternoon. He was having financial difficulties and was behind on payments to the company. They had refused to deliver food to his store, which would’ve caused it to shut down over the weekend. He was in a real panic and asked for my help. After a few hours of phone calls and back to back and forth with senior executives across the country, the company agreed to deliver his food. What a relief! I will never forget his gratitude and determination.

Eventually that franchisee got back on track, caught up on payments to the company and went on to be a successful franchisee. What a pleasure it was to make such a difference in his life. This is just one story of many. Over the last nearly 40 years I have seen many similar type situations. I have been involved in many, many, many tough spots with franchisees. I have been in the middle of these challenges, not just in Dominos, but with other major national brands over the years. I have helped national associations build strength and systems all focused on helping the individual franchisee.

The reality is franchise associations have played a key role in many franchisees lives. Whether it’s meetings with best practices, aggregating purchasing, lines of communication to the franchisor, developing relationships with vendors and suppliers, having fun with fellow franchisees at a convention, addressing major concerns in a collective manner, franchise association’s can be a tremendous asset to an individual franchisee…you.

We all understand we are stronger as a group. The reality is we are also wiser. When we put our minds together to address issues, concerns and operational challenges we are way more likely to succeed. Collective representation is key in a relationship that you have influence but not control over.

The franchise/franchisor relationship is inherently challenged. Contracts by necessity are one-sided and the basic profitability of the franchisor is typically based off of the top line sales. A franchisee’s profitability is based off the bottom line. This simple reality opens up the relationship for piles of smiles and potential trials. In this environment having collective representation is very useful. It’s not a union thing. It’s more about gathering consensus on issues and communicating those concerns and ideas. A great franchisor like Dominos understands that the association is offering a vehicle for discussion and communication in the other direction. Well respected and used with wisdom, this is a tremendous vehicle for building a solid and stable relationship.

Another key aspect of an effective association is saving its fellow franchisees money. When I was running the association we set up nearly 40 affinity partnerships with suppliers to aggregate purchasing and save the franchisees money. Everything from shipping to accounting to insurance was offered for a “special” price. Our value-added partnerships (VAP’s) added value to being a franchisee. I’ve been involved in negotiations that has saved franchisees multiple millions of dollars. I know one franchisee that took advantage of one of our value added partnerships and the savings in one year paid for 20 years of dues. Do you think he is still at member and grateful for the associations efforts?

It may seem far down the road when you’re beginning to look at becoming a franchisee, but an effective association can be a tremendous asset.

So as you’re looking to become a franchisee , find out if there is an association and make a call to the head of the association to talk about the company. Discuss what value they offer as an association explore the franchisee make up and their key concerns. Talking about the main issues will help you make a better decision in buying a franchise. Franchise Association’s can be a tremendous asset to you as a franchisee.

The great american franchise expo is filled with quality brands that support such associations and feature strong brands looking to expand.