"Seven Principles for Fair Franchise Advisory Councils "
Abstract : Franchise Advisory Councils (FACs) form an important managerial instrument for franchisors to create and/or maintain franchisees’ trust in the fair and effective functioning of their franchising networks. We build on procedural fairness theory and insights from articles in trade journals to develop a theoretical framework with seven core principles that affect franchisees’ perceptions regarding the fair management of their FACs. These core principles are: the consistency principle, the bias-suppression principle, the accuracy principle, the correctability principle, the representativeness principle, the ethicality principle, and the interactional principle. For each core principle we distinguish specific managerial principles that help in fulfilling it. This discussion results in an extensive framework with principles for the design and management of fair FACs (‘the fair FAC framework’). We end the paper by discussing theoretical implications and avenues for future research.