The main reason FFT works is that Chane does a tremendous job of making sure it supports the local businesses and they self police the hell out of it. Those businesses come first. if a fondren business is there that sells X, and an outsider asks to bring that same product in to push, they say no, period. There is no stepping on toes of those local businesses. That creates one hell of a sense of community.
Also, he requires that all music be original. No cover bands. They may play one cover but they wont be sitting there playing tons of covers. That is cool too and helps push local music.
I have not been able to go (live in Meridian) but spent some time talking to Chane at an event in Meridian and he really laid out his "rules." I think they work very well.