When you buy a franchise in New York, you may find that other franchisees have formed a franchisee association. This association was formed to gain leverage against the franchisor. While this may sound like an aggressive business strategy, it is simply meant to level the playing field in the franchisor/franchisee relationship.
A franchisee association can be helpful when addressing issues that are widely shared by franchisees. It can strengthen the members' positions in:
For example, if a franchisor tries to introduce a controversial change to the franchise system, such as raising the monthly royalty payments, a franchisee association may stand united against the unpopular change. These associations generally hold meetings on a regular basis, and address the issues that affect the franchisor/franchisee relationship.
If you have purchased a franchise in New York, you may be considering the advantages and disadvantages of participating in a franchisee association. Likewise, if you are a franchisor and your franchisees have formed a franchisee association, you may have concerns about what this means for your own business interests. Learn more about franchisee associations by visiting our article library.
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