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THE FRANCHISEE ADVISORY COUNCILS

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A very positive aspect of the franchisor-franchisee relationship has been the development and creation of franchise advisory councils (FACs). As a franchise system grows, there may be difference of opinion among the franchisees and differences which exist between the franchisee and franchisor. 

A method to improve working relationships (which has been used very successfully in many organizations) is the development of franchise advisory councils.  The advisory council allows franchisees to meet and provide suggestions or advice to the franchisor on how to improve operations or products/services of the organization.

The FAC is generally established to encourage communication, creativity, inventiveness, and responsiveness from the franchisees. The franchise advisory councils are a formalized method of coordinating the franchisor-franchisee relationship and of also coordinating activities among franchisees.

Most franchise advisory councils have been started at the initiation of the parent company. Some have developed out of a need to discuss problems and concerns of the franchisees and have been formulated in opposition to the franchisor. Generally the FAC is established to help develop support and loyalty between the franchisees and the franchisee/franchisor experience.