Message from Trustees
Dear AAFD Member, As the American Association of Franchisees and Dealers Trustees (AAFD), we wanted to write directly to you to highlight a couple of important issues. First, this week, the Federal Trade Commission’s Request for Information comment period ends. You only have until the end of the day on June 8, 2023 to submit your comments. We have sent out multiple reminders for this and are making a final plea to have your voice heard – for those that already submitted, we appreciate your efforts and voice...thank you! This is truly the opportunity of a lifetime where we have the ability to make meaningful changes in how the FTC oversees the franchise business model. If you have questions, reach out to your chapter coordinator or contact us here: support@aafd.org The second item follows up on having our voices heard in Washington, DC. The Coalition of Franchisee Associations (CFA) is having its annual trip to our Capitol on June 20-21, 2023. Meetings ...
Welcome Kim Perrotta, AAFD’s newest Supporting Member of our Speakers & Experts Panel and Delegate to the AAFD’s Franchisee Leadership Council.
The AAFD welcomes Kim Perrotta, founder and President of Worldwise Franchise Development, as our newest Supporting Member, and newest participant in our exclusive Speakers and Expert’s Bureau. With extensive experience in franchising, as both a franchisee and a franchisor, Kim has been involved with start-ups and significant franchisors throughout his career. His expertise includes franchise sales and development, Franchisee support, operations, marketing, financial management, real estate, construction, domestic US and international franchise brand building, and brand acquisitions. Kim has been a long-time advocate for franchisee rights and is passionate about advocating for fair franchising standards. He is a champion of Total Quality Franchising, having experienced its success first-hand. AAFD Executive Director, Richard Stroiney, and Stephen Rymal, Co-Chairs of the AAFD’s Franchisee Leadership Council are pleased to name Kim as an official voting delegate to the Council as a representative of AAFD Associate Members. As an AAFD Associate Leadership Council delegate, Kim will be supporting the AAFD by continuing to increase the awareness ...
Is Franchising Fair?
The AAFD, co-hosted the session with the Federal Trade Commission (FTC) to address the industry’s concerns about the existing franchise model in anticipation of the FTC’s request for comment due next month. Keith Miller, Director of Public Affairs and Engagement for AAFD and principal of Franchisee Advocacy Consulting, was the moderator. The 45-minute session featured the Honorable Lina Khan, Chair of the FTC. More than 1,500 small business franchisee owners from the AAFD, the Coalition of Franchisee Associations, and the Asian American Hotel Owners Association registered for the webinar.
It’s time for franchisees to engage and drive the franchise industry
On April 20th, Lydia DePillis from the New York Times wrote “Franchisers, Facing Challenges to Business Model, Punch Back” – a thorough piece on the years’ long troubles franchisees have had to face with bullying franchisors in an environment with little state and federal policy regulations and enforcement – until recently. We thank Ms. DePillis for highlighting the conflicts from two notable franchisee organizations that can help pave the path for a more inclusive and fair franchising model. At AAFD, our mission began and continues to support franchise owners and our member chapters in matters that empower their businesses – sometimes that includes legal battles with their franchisors and at other times, it includes introducing and supporting policies to improve the power imbalance inherent in franchising. Senator Catherine Cortez Masto (NV) has championed the causes in the United States Senate, introducing two pieces of legislation to provide more transparency in SBA loans. In addition, she released an 87-page report in April 2021 ...
AAFD Comment Letter to Federal Trade Commission on Non-Compete Rule
The AAFD submitted its support in a Comment letter to Federal Trade Commission on the proposed Non-Compete Rule, which would ban non-compete agreements in most instances. We also advocate that the Rule be extended to encompass franchise and distributor agreements for comprehensive coverage. READ FULL LETTER HERE: AAFD Support of FTC Non-Compete Rule
GAO Report: Examining FTC’s Oversight of Franchising
To gain insight into the challenges franchisee owners face, the Government Accountability Office (GAO) was asked to review the FTC’s oversight of franchising. As part of this review, GAO an independent, nonpartisan agency that conducts research for Congress about how the federal government spends taxpayer dollars and how well government programs and policies are meeting their objectives released their report on the FTC’s oversight of franchising. Last year, the GAO attended the AAFD Franchisee Leadership Summit on September 10-13 in Mesa Arizona and conducted a series of focus groups with franchise owners, hearing directly from them about their experiences and opinions related to franchising laws and regulations. In addition, the GAO reviewed laws and regulations related to franchising, along with FTC data and documentation on franchise related complaints and investigations. GAO conducted nine discussion groups with 44 franchise owners, selected to represent a variety of industry types. GAO also interviewed FTC officials and 25 franchising stakeholders (attorneys, trade association representatives, and franchisors). ...