There are certain do's and don'ts which FAC should follow to properly adhere to standard operating procedures and federal and state regulations. The following is a simply list of do's and don'ts which FAC generally should be aware of:

  Do not discuss pricing (violation of antitrust laws)

  Do not discuss who can or cannot be a franchisee

  Do not exclude anyone from the FAC without good cause

  Do have a written set of by-laws

  Do use agendas and minutes

  Do follow-up

  Do consider all recommendations and suggestions

FACs are valuable communication tools between the franchisees and franchisors. The opportunity of developing and working with a FAC provides an extension in the communication and training arm of the franchise system. FAC's should adhere to the basic standards and regulations of business practice.

FAC members need to stay out of price discussions because of the antitrust implications and the collusion or price fixing which may occur. FAC's should also stay away from discussing who can or cannot be a franchisee because of the horizontal restraint of trade conditions stipulated in antitrust laws. It is basically illegal for one franchisee to exclude another franchisee from a franchising organization. The FAC is a tremendous opportunity for franchisors to grow and expand their operations and systems using the strength of the franchise system to train and support itself.

The franchise advisory council can also serve as an excellent form for dealing grievances or for exerting peer pressure upon dissonant franchisees. The FAC members can meet with independent franchisees to discuss their individual grievances and to help resolve them or to provide suggestions or recommendations to the franchisor.