Most FACs are formulated by the franchisor suggesting that all franchisees meet together to discuss the operations and functions of the franchising program. The actual membership of the FAC is generally open to all franchisees. If the council is to be a small executive advisory council, then the franchisees generally nominate and elect representatives from the different franchise regions in the United States. Many franchisors divide the United States into 6-12 regions and elect one or two council members per region. Other FACs keep their membership open to all franchisees and they have the opportunity of participating in each FAC meeting each year.

The costs of these group meetings are generally covered by the individual franchisees, in limited cases or in the instance of executive advisory councils the costs are covered by the franchisor corporations. The primary costs involved in such meetings are the travel, lodging, and meal expenses incurred by the franchisees as they travel to meet with their FAC.

The FAC is generally organized with at least two specific standing committees: 

(1) advertising/marketing and 

(2) operations. 

There are additional committees which are often designated including services, finance, research and development, and even a grievance committee. These committees are designed to help the franchisees discuss the various aspects of the franchise system and how they may be improved. Suggestions, advice, and recommendations are transmitted to the franchisor. Most franchisors strive diligently to adopt or adapt these suggestions into the franchising organization.

Franchisors have a tremendous opportunity to gain insight and suggestions from their FACs. Many seek information about the introduction of new products or services as well as the introduction of new operation procedures. Additionally, the FACs generally provide information about the use of advertising materials and may even develop their own advertising materials for approval by the franchisor. These programs are designed to help, not hinder, the overall franchise system. 

Franchisees realize that the mutual interdependence of the franchisor and franchisee encourages success on the part of the franchisee and the franchisor. Many FAC organizations also require that any new product or service developed by a local franchisees be submitted to the FAC organization before being submitted the headquarters organization. This allows other franchisees a chance to utilize and experience the product or service before it is brought to the franchisor's attention.