What does a Franchise Association do?

H. Bliss
H. Bliss
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Businessman giving a thumbs-up

Designed to help the entire franchising community, a franchise association provides information, resources, networking opportunities, and advancement programs to assist businesses that are associated with franchising. Through a franchise association, a small business owner can network with colleagues and business suppliers and acquire information designed to help people who are starting or running a franchise. Franchise associations also organize trade shows, conventions, and conferences with meetings, speeches, and classes aimed at helping franchise-related businesses navigate the world of franchising.

A franchise is a business opportunity in which a business seeker purchases the right to provide already established goods or services under the name of an existing successful company. An owner of a franchise is called a franchisee. Franchises are common in many types of businesses, including discount retail stores, clothing retail, and especially fast food. The advantage of a franchise is that it gives franchise owners an already recognizable name that they can use to build a successful business. Several disadvantages, including high upfront cost, continued royalties, and a lack of control over the business keep some potential small business owners from getting into the franchise business.

Budding franchise owners can find assistance in starting up a franchise on a franchise association website. For those just getting started learning about franchises, franchise association websites provide information to explain franchises, break down costs of running a franchise, and provide advice about maintaining a successful franchise. This type of association can be helpful because it provides a central location to find a variety of information catered to business owners running or working with a franchise.

While the names are similar, a franchise association is different from a franchisee association. A franchisee association is an organization of people who have bought a franchise. This type of association exists to assist franchisees with business questions and to provide advice, legal resources, and help during disputes with the company who sold the franchise, called the franchisor. While a franchisee association accepts only franchisees as members, a franchise association will include franchisors, franchisees, and franchise suppliers in the organization.

Many franchise owners find themselves with more franchise questions than the franchisor has time to handle. When help from the franchise company is not available, franchise association can assist a franchise owner with general questions and problems association with running a franchise. This type of organization can also assist franchisees with establishing contact with mentor franchisees in their area who can help provide specific business advice catered to the surrounding region.

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