Investing in a franchise business opportunity is a big step — an exciting, challenging, and even scary step for many. You must spend some time researching franchise opportunities and make every effort to make the right choice for your circumstances. You should also have a franchise lawyer look over your franchise agreement.
But there’s another place to look before you leap — franchisee associations.
Franchisee associations range from national and state associations for franchisees and franchisors in general to associations for specific franchises. Like any trade association, these groups offer a number of benefits to members.
Franchise associations have something in common with trade unions as well as with trade associations. They help franchisees band together to communicate with and even negotiate with franchisors. There’s strength in numbers, so franchisee associations can sometimes get concessions from franchsors which franchisees individually could not. They may also be able to gain access to information and support which an individual wouldn’t have time or funds to pursue.
Franchise associations lobby the legislature as well as individual franchises. The Franchise Rule, created by the Federal Trade Commission and shaped by a number of important court cases on franchise law, only protects franchisees from bad business practices. A group of franchise professionals have been lobbying for a “Franchise Bill of Rights” or a set of rules that grant certain rights to franchisees. Some franchisee associations have adopted these principles and pursue them with franchisors collectively.
Joining a franchise association can also put you in touch with a lot of resources and help from other experienced franchisees who are familiar with the problems you encounter. The experiences of new franchisees are much the same, and it’s great to be able to learn from the experiences of others — you don’t have time to make all the mistakes yourself. Many franchisee associations have conferences, webinars, and other professional development opportunities that can provide inspiration and help you improve your results.
On top of bargaining clout and individual support, being able to create relationships with other franchisees can open up doors to bigger opportunities, like leadership in your franchise community. If you’re good at networking, being part of a franchise association can help bring in strategic business partnerships and other opportunities that can help expand your franchise business and your personal career. Being in the limelight as a franchisee in the association can help you stay on track for career goals, especially if you’re used to a corporate style structure and want ladders to climb even when you’re a business owner.
When you’re weighing out franchise options, looking for a franchise association can help give clues into the culture of the franchises you’re considering. The process can also give you insight into the challenges and rewards of being with a particular franchisor. Be sure to ask questions from franchise associations and do some digging in their website, if possible.
It may not be possible — the Supercuts Franchisee Association website, for example, is a members-only bulletin board — but the National Coalition of Associations of 7-11 Franchisees, on the other end of the continuum, has extensive resources including up to date links to legislation and news that can affect franchisees. You’ll also see that they have golf tournaments, group charitable giving efforts, and updates from vendors, among other things. Edible Arrangements walks a middle path, with a public website that shows that they offer a lot to members — but you must be a member to read the information.
Checking into the franchisee associations can give you a clearer idea of the franchisee experience for the franchises you’re researching, and any information you can gather about your potential franchise will help you make a more informed decision. They may also provide welcome support once you’ve opened your franchise.
