Franchise Advisory Councils (FAC’s) are a representative committee elected to act on behalf of all franchisees within a system, much like a union.
The FAC in effect acts as a central mouthpiece for franchisees designed to provide feedback to the franchisor, to contribute ideas, and provide information to the franchisor with a view to improving the franchise system and brand as a whole.
FAC’s can have varying levels of formality or informality.
The FAC typically would meet with the franchisor quarterly or bi-annually.
The committee members in effect act in an advisory or consultative manner with the franchisor.
FAC is based on the understanding that the franchisor would take on board the information or recommendations made by the FAC when the franchisor is determining its strategies for the franchise system.
Topics that may be covered in the FAC meetings could be quite varied and might include, for example:
- Supply of goods and services;
- Pricing of goods and services;
- Plant & equipment needed for the franchised businesses;
- Marketing, promotion and advertising;
- Franchisee support;
- Operational matters.
A well conducted FAC will incorporate a written charter (or By-Laws) by which the FAC operates.
Ultimately, operating a successful FAC that adds value to the system and its stakeholders will depend on sound communications, commitment of the franchisor and the franchisees, the capabilities of the individual FAC members and how well the FAC is structured.
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