A franchisee advisory council or an Independent Franchisee Association may provide value in other ways such as engagement with the franchisor, preventing costly litigation, a forum for dispute resolution, sounding board for the introduction of new products or services by the franchisor and a vehicle for assessing the attitude of the franchise network.
However, our findings indicate that there is not a significant difference in the success or growth of a franchise system whether or not there is an FAC or IndFA.
The value placed on either an FAC or IndFA by a prospective franchisee should be carefully considered when conducting due diligence since it is not necessarily a predictor of a healthy franchise system.
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