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ARTICLE · 23 SEPTEMBER 2011

Franchise Advisory Councils

An overview of the role of Franchise Advisory Councils.

AustraliaCorporate/Commercial Law

The majority of franchise networks seek the input of their franchisees on various issues. Often franchisors seek to formalise these discussions via the establishment of a committee, council or other body of representatives, which is often referred to as a "Franchise Advisory Council" (FAC).       

FACs are participated in, and generally initiated, facilitated and funded by the franchisor, and are "franchisor led". They are different from franchisee associations formed independently of the franchisor to discuss supply and other business issues, and which franchisors do not sponsor or lead.  

The general purposes which a franchisor has for a FAC are to:

  1. facilitate and enhance orderly communication between franchisor, franchisee and other parties in the network; and

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