In the wake of bombshell revelations (reported on January 20th in Restaurant Business Online, “The BurgerIM Disaster”) of hundreds of franchisees not receiving promised services and support, and serious allegations of fraud, mismanagement, and misappropriation of franchisee funds, scores of BurgerIM franchisees have launched the BurgerIM Franchisees Chapter of the AAFD. The association has quickly established a steering committee, a membership committee, and a bylaws committee. It is preparing to elect a board of directors and is rapidly increasing its membership.   

Last year’s AAFD Franchisee Leadership Summit and Annual Conference was a rousing success. We achieved a lot in 2019, but the fight for fair franchising is far from over! 

We need to keep the momentum going to further empower franchisees and protect the equity they work so hard to build in their franchise businesses. Join us this October in Mesa, Arizona for the AAFD’s 2020 Franchisee Leadership Summit and Annual Conference. 

The AAFD’s was founded in 1992 in reaction to an ongoing degradation and deterioration of franchisee rights and equity that had been evolving for many years. The actual premise for my book, The Franchise Fraud, first published in 1994, was that the then modern-day franchise falsely represented that franchising was (and is) a safe and secure path the business ownership. In fact, then (and now) the ‘modern’ franchise is more business rental than business ownership, and most franchise agreements grant the right to ‘operate’ (not own) the franchised business.

Answer: When businesses face challenges getting enough employees to participate in their health insurance benefit (enough to meet the minimum participation rate set by the insurance company), they often use a so-called “carve-out” to offer the benefit to a smaller subgroup of employees.

Under Fire in Federal Court: Can a claim of racial discrimination be forced to arbitration?

United States Court of Appeals for the Second Circuit in New York recently ruled in a very interesting case our firm is handling that may have far reaching effects with respect to racial discrimination in granting franchises and, more broadly, on the right of franchisors to enforce arbitration clauses against prospective franchisees.   

First, I want to start by telling the AAFD membership how excited I am to be working with this organization as the Director of Public Affairs and Engagement.  I thank Robert Purvin for giving me this opportunity to work with all of you in bringing more focus and engagement to the legislative and political process. I truly believe in the power of franchisees to engage in issues that positively impact them, and of course, working to build and protect the equity in their businesses.