Independent Franchise Association Pros and Cons

If you are considering working with an independent franchise association, it is important to understand that there are benefits as well as disadvantages of going this route. Understanding all of the differences between them can help you make an informed decision about what is most appropriate for you. An independent franchisee association is an organization of various franchisees usually within one franchise system.

The Purpose Behind an Independent Franchise Association

The major function of such an organization is to bring out a more powerful and singular voice for dealing directly with the franchisor. It can also increase the individual purchasing power for members as well. When you are thinking about the sum total of all the interests for those individuals with active franchise operations, an independent association can help bring all those concerns into one place.

A platform is the primary reason why franchisees would get together and form an independent franchisee association. This may be distinguished from other organizations put together such as advisory councils that could be funded or organized by the franchisor. An independent franchise organization allows franchisees to have a bigger voice as the hybrid associations that are funded and organized by the franchisor may limit the ability for independent action on the part of the franchisee.

The Typical Structure of an Association

The structure of the association will vary based on the size of the system. In a typical system, the franchisees will be the members of the association. There could also be regional associations that work together for a national association. The primary use of an association is to create better understanding and communication between a franchisor and the franchisee.

An association can also put together a stage for franchisees to debate and discuss the common issues they face in order to make better informed decisions in the future. It is important to consider how you put together an independent franchisee association as it needs to be viewed as a tool rather than a direct attack on the existing franchisor.

Running a franchise business might be the right fit for you, but it’s something where you may have questions about the most effective way to run the business or how to deal with challenges that have emerged. This is one reason why you may want to consult with an experienced attorney about your next steps and whether or not it makes sense to form an independent association.

Trembly Law


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