Latest / Franchise Conversations with Fexingo: Buying, Running, and Scaling Franchise Businesses / How Franchisees Use Advisory Councils to Influence Brand Decisions
Transcript
- Lucas: When you buy a franchise, you're not just buying a business model. You're buying into an entire system. And some franchisees have found that the most powerful tool in that system isn't in the operations manual — it's a seat at the table with the franchisor. Luna: You're talking about franchisee advisory councils. They're more common than people think, but not every franchisee knows how to use them effectively. Lucas: Exactly. And that kind of inside access can make a real difference for your business. It's actually one of the reasons we started this show — to surface these strategic moves. We deliberately keep these episodes ad-free because we believe the insights should speak for themselves. If these conversations have helped you think differently about your franchise, you can support the show at buy me a coffee dot com slash fexingo. No pressure — it just keeps this resource available for everyone. Luna: It's a small way to keep the content independent and focused on what matters for franchisees. Lucas: And now, let's drill into how these councils actually work. Take the McDonald's system. Their National Franchisee Leadership Alliance — the NFLA — meets quarterly with corporate leadership. And it's not advisory in name only. In 2025, that council pushed back hard on a proposed menu simplification that would have removed several popular items. The council presented data showing those items accounted for 12% of sales in certain regions. McDonald's listened and kept the menu flexible by region. Luna: Twelve percent is significant. That's millions in revenue that franchisees would have lost. So the council directly protected their bottom line. Lucas: Right. And that's the power of a well-functioning council. But not every advisory council carries that weight. Some are more like suggestion boxes. The difference comes down to structure and how the franchisee representatives are selected. Luna: So what does a strong advisory council look like? What's the model? Lucas: A good council has elected members who serve staggered terms. They meet regularly with the CEO and key leaders. They have access to real financial data — not just aggregate numbers, but store-level performance. And they have an explicit agreement that certain decisions require council input before implementation. For example, Subway's Franchisee Advisory Council has a say in new product introductions and national marketing campaigns. They can delay a rollout if the timing is off. Luna: Delaying a rollout is huge. That's real power. But how does a franchisee actually get elected to one of these councils? Lucas: Usually it starts at the local level. Most large franchise systems have regional associations or area meetings. You need to get involved there first. Show up. Contribute ideas. Demonstrate that you can represent the group, not just your own store. From there, you'll get nominated for the regional board, and eventually for the national council. It's a long game — typically two to four years of building relationships. Luna: That's a commitment. But the payoff can be enormous. You're essentially influencing decisions that affect every part of your operations — from supply chain to technology. Lucas: Absolutely. Let's talk supply chain. One of the recurring friction points is vendor selection. If the franchisor picks a supplier that franchisees find overpriced or unreliable, the council can bring data on alternative vendors and argue for a change. I've seen councils save the system millions by renegotiating purchasing agreements. The key is coming with hard numbers, not just complaints. Luna: That's the advice I'd underline — data over emotion. The franchisor is more likely to listen if you show revenue impact or cost savings. Lucas: Exactly. And councils also weigh in on technology. When Domino's was rolling out its GPS tracking system, the franchisee council tested it in a pilot group and gave feedback on driver adoption and customer response. That feedback shaped the final rollout. Without the council, the corporate team might have missed key operational hurdles. Luna: So the council becomes a beta-testing group for new initiatives. That's a valuable role. Lucas: It is. But there's a risk. If a franchisee gets too cozy with corporate, other franchisees may see them as management instead of an advocate. You have to walk a tightrope: collaborate on shared goals but push back when the system's interests don't align with the operators'. Luna: I've heard stories of council members being pressured to support corporate positions. How do you avoid being co-opted? Lucas: Transparency helps. Good councils publish meeting minutes or summaries to the broader franchisee base. That way, everyone knows what was discussed and who pushed for what. Also, councils should have access to independent legal or financial advice — not just the franchisor-provided counsel. Some franchisee associations fund their own consultants to review proposals. Luna: That independence is critical. Otherwise, you're essentially asking the fox to guard the henhouse. Lucas: Right. And that's why the strongest councils have their own budget, their own elected leadership, and a formal charter that defines their authority. If you're a franchisee considering whether to run for your council, look at the charter first. Does it grant meaningful input, or is it just a communication tool? Luna: What's a red flag in a charter? Lucas: If the franchisor can dissolve the council at will, or if the council's recommendations are non-binding and rarely acted on, that's a weak structure. Also, if the council members are appointed rather than elected, the franchisor can stack it with allies. Genuine representation requires election by the franchisees. Luna: So the election process matters. But I imagine not every franchisee has time to run a campaign. Lucas: That's true. But you can still influence the council without being on it. Attend the open forums. Submit written feedback. Vote for candidates who share your concerns. And if you have a specific issue — say, the cost of the new point of sale system — you can organize a group of franchisees to present a joint case to the council. They are your representatives. Luna: So the council is a channel, not a cure-all. You have to engage with it strategically. Lucas: Exactly. And it's worth noting that councils also benefit the franchisor. They provide a structured way to get feedback before making expensive mistakes. A franchise system with a healthy advisory council tends to have higher franchisee satisfaction and lower litigation rates. It's a win-win. Luna: I'd add that investors and lenders often look at the health of the franchisee-franchisor relationship when evaluating a brand. A strong council signals that the system is collaborative. Lucas: Great point. So if you're a prospective franchisee, ask about the advisory council during your discovery process. How long has it existed? What power does it have? Interview a current member. That tells you a lot about the culture you're buying into. Luna: And if you're already a franchisee and your system doesn't have a council? Can you start one? Lucas: Yes, but it's tricky. You need buy-in from other franchisees and from the franchisor. The best approach is to build a coalition of like-minded operators and approach corporate with a proposal. Frame it as a way to improve communication and reduce friction. Start with a pilot — maybe a regional council first. If it proves valuable, it can expand. Luna: That takes patience, but it's doable. And the earlier you get involved, the more influence you have. Lucas: Absolutely. The franchisee advisory council is one of those leverage points that can compound over time. A single decision you influence — like a menu change or a supply contract — can affect your store's profitability for years. It's worth the investment. Luna: So the question is: are you ready to use your voice to shape the brand you're building your future on? Lucas: That's the takeaway. Thanks for listening to Franchise Conversations with Fexingo.