Interacting with Independent Franchisee Associations

Independent franchise associations change how franchisees and franchisors interact with each other – sometimes in a very substantial way. From the franchisor’s perspective, there are many factors that come into play when deciding how to react to an organizing franchisee association.

  • Should the franchisor recognize the new association?
  • What is the franchisor giving up if it does?
  • Are there any laws that prohibit the franchisor from blocking franchisee attempts to organize?
  • What are the benefits of having an association? What are the negatives?
  • Will the franchisor’s litigation exposure decrease if it embraces a franchise association? Will it go up?

On the other side of the coin:

  • How will a franchisee association benefit franchisees’ needs and expectations?
  • When is the time right to organize a franchisee association?
  • What is involved in setting up the association?
  • How will the costs of setting up and operating the association get paid? Who will pay the costs?
  • What can be done if the franchisor resists organization?
  • What types of concessions can the association realistically expect?
  • How must the organization communicate with the franchisor so that it can move its agenda forward without creating a combative relationship?

Whether you are a franchisor or a franchisee, we can help you through this journey and provide you with the benefit of our experience. Call us today at 215-525-1165.