Page 134 - Entrepreneur - USA (January - February 2020)

THE FRANCHISE

revenues, and that they’ll adhere to brand standards and follow are paid for and supported by the franchisor, and operate under
structured systems. But, of course, that’s not all. As Ronald Reagan by-laws that address issues like communication, confidentiality,
often said, “Trust but verify.” and purpose.
Verification doesn’t imply selfish intent—it’s in the best interest Some franchisors may balk at the idea of launching a FAC—it can
of franchisees, as well, who suffer when brand sound like a frightening way to open commu-
standards are not met. They suffer when other nication lines that could encourage franchisee
franchisees cheat, leaving less advertising unrest. But this thinking is flawed, and a lit-
funds and royalties to support the franchisee The last thing a tle naive: It assumes franchisees will not find a
community. franchisor wants way to communicate about any possible dissent
So where is the middle ground? That’s the is their franchisees without these tools. It is far better for the fran-
real power of transparency. to have formed chisor to hear about potential problems before
If, for example, a franchisor uses a mystery an association they become major issues, and FACs provide that
shopper to uncover violations of standards and without them—a opportunity. The last thing a franchisor wants is
underreporting of revenues, the franchisees sign that something their franchisees to have formed an association
should know about this practice. Hide it and is wrong. without them—almost always a sign that some-
franchisees will forever distrust the brand. thing is wrong. When an independent associa-
Invest in ways to keep transparent commu- tion is built, it’s often done to share grievances,
nication channels open. A good franchise advi- and those grievances are almost never pretty.
sory council (FAC), for example, can play a big role here. A FAC is Legal counsel may follow.
generally established by the franchisor and is designed to facilitate That’s why it’s so important to keep the conversation open, honest,
communication between the franchisor and franchisees, as well and transparent. When franchisors demonstrate that they’re open
as among franchisees themselves—it’s a way to foster involvement to sharing information with franchisees and to hearing criticisms,
and leadership, plus build a valuable community of resources. FACs there’s only one direction the relationship will move: forward.

Easy to own. Fast to open. Fastest growing.

There’s no better time to join one of America’s fastest growing childcare franchises.

Immediate
Opportunities
Available! www.TheLearningExperience.com/franchise-opportunities | (888) 278-0820