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.
