Why was SKIFA formed?
Smoothie King franchise owners have been a group of people with an approx. $100,000,000 investment in Smoothie King but with no collective voice or leverage in gaining a return on our investment at the corporate (franchisor) level. Most every major franchised company in the U.S. has at least one franchise owners association, and these groups often are critical in ensuring long-term success of the brands they represent.
Additionally, franchise owners need to leverage the strength in our numbers to put together a health insurance plan that will protect ourselves and our families as the U.S. health care environment continues to evolve. This plan was launched in July 2012.
The formation of this association has been an evolutionary process that began three years ago. Most of the founding members of SKIFA have served on the FAC and determined that many of the issues we have experienced, leading to lack of growth and increases in expenses, could have been mitigated if we had had more input in decision making.
How is SKIFA different from the Franchise advisory council?
Almost all of the founders of SKIFA (owners of nearly 10% of the stores in the system), are current or former members of the FAC. The FAC, while better than nothing, provides a voice for seven people in the system, but has not been able to push forward initiatives that could make our franchisees more profitable. This is not because FAC reps do not want to make a difference. It is because the FAC is only an “advisory” body and has no real input into creating value or building profit. A strong and vibrant SKIFA will give all franchisees a voice and will allow us to say “All franchisees are aware of this issue, and we are all supportive of this solution.”
I have a good relationship with the franchisor. Will that change if I join SKIFA?
SKIFA is incorporated in Arkansas, which has strict laws in place protecting members of franchisee associations from franchisors seeking to penalize them for their involvement. Additionally, SKIFA does not provide it's membership list to any outside party, including the franchisor.
How will the change in franchisor ownership affect the work of SKIFA?
Our previous owners recognized the importance of working with SKIFA to create win-win initiatives for Smoothie King. Considering that everything we do at SKIFA is in support of our mission, we have every reason to believe our franchisor will always want to tap into the ingenuity and accountability SKIFA delivers
How do I become a member?
What if I own more than one store and wish to become a member?
Multi unit franchisees must submit applications for each store owned. The reason for this is to ensure maximum funding for association initiatives. Subsequently, multi unit franchisees will also have the ability to cast votes for each store owned.
How were the current board of directors formed?
The current board of directors was formed by the founding members of SKIFA, each of whom contributed to the $10,000 required for start-up. Each board member has agreed to a staggered step-down period, providing elections within the first year and a fully elected board of directors within three years.
What are the dues?
The dues are $200 per year. In order to be a member in good standing of the Association, all franchisees must be current in their payment of dues. The amount of dues must be paid on a “per-unit basis” (as opposed to a per-franchisee basis). Any multi-unit franchisee that has not paid dues sufficient to cover the number of units owned will not be deemed to be a member in good standing. Dues will be set at $200 annually, per unit, but may be changed annually at the discretion of the Board. Dues are due on the first day of the Association’s fiscal year or as determined by the Board of Directors.
What do I get in return for my dues?
Members who are in good standing may vote and have other access to member services, as they are made available by the Association. Members will have power in numbers. The more members we have, the stronger we will stand on important issues that affect the return on our investment.
How will my dues be utilized?
At the outset, it was the strategic goal of SKIFA to operate a lean organization with low operating costs. The board of directors is not compensated in any way. The main line items in our budget are professional fees for legal consulting and the formation of a reserve fund that will be available should our franchisees need to enter into any litigious dispute.