Franchisees nationwide are facing devasting impact on their businesses, and increasingly mandated store closures. Naturally, franchisees face concerns regarding impact on their franchise and lease agreement obligations to stay open, and equally important, to pay fees required by such agreements. Most, but not all, franchise agreements, and most lease agreements, provide protection to both franchisors and franchisees, and landlords, in the form of a Force Majeure or Act of God clause.  These clauses act to forgive (waive) performance when business is disrupted by an “Act of God.” Regardless of the existence of such provisions in the franchise agreement, franchisees are advised to seek protection from their contract obligations if their business is disrupted by an Act of God.

We are all under stress right now as we face a new kind of quickly evolving crisis that is not just regional, but global. Large enterprises, franchise organizations and small businesses alike are all trying to determine better ways to communicate with staff, partners, customers and vendors.  

Texting in these times can provide a fast, trusted means of communicating since 90% of text messages are read within one minute, and just as importantly, less than 1% are considered SPAM. Ideal for getting out trusted information quickly. 

We have received an important communication from Medova Healthcare regarding benefits and protections included or ADDED to Lifestyle Health Plan subscribers.

The AAFD has made it easier than ever to access the AAFD’s acclaimed Fair Franchising Standards. Simply visit the Fair Franchising Standards page on our AAFD’s Website, and choose to order from Amazon.com, or simply download a PDF version directly from the AAFD for Free! The AAFD Standards are also available from Amazon in either paperback or Kindle format. 

S.3548 has been introduced in the Senate that specifically takes action to assist small business owners from the effects of Coronavirus pandemic. We now have a starting point to work from and will do our best to keep you up to date on its progress and other legislation that impacts franchisees. The main points of this legislation are to get money into the hands of small business owners through disaster loans, penalty free access to retirement funds, and possibly grants.

H.R. 6201 did pass the Senate yesterday and was signed into law by the President. The Labor Department will now interpret the law and finalize the rules to execute the law. This chart, provided by Senate staff may help explain some of the paid leave requirements from H.R. 6201.

AAFD has given its support to newly introduced fair franchising legislation in New Jersey.  A2682, a bill concerning hospitality franchisee agreements, has been introduced by Assemblyman Raj Mukherji, who is also Chair of the Assembly Judiciary Committee.  Joining him as primary sponsors are Robert Karabinchak and Ronald Dancer making the introduction a bipartisan bill. 

Stephen Rymal and franchise attorney Bryan Dillon will return as co-chairs of the AAFD’s 2020 Franchisee Leadership Summit and Annual Conference, taking place October 14 – 17 at the Sheraton Mesa Hotel in Mesa, Arizona.   The conference co-chairs are responsible for developing the content of the meeting, recruiting top seminar speakers, and supporting this year’s theme, “Empowering Franchisee Associations.”   

AAFD has weighed in on two legislative issues in California in the past couple of weeks.  The first, AB-2672, which will make updates to the California Franchise Relations Act.  This bill was authored by Assemblyman Chris Holden, who also authored AB-525 in 2015, which made significant improvements to the Act.  AAFD is proud to be a sponsor of AB-2672. The second action is on SB-967, which is a bill designed to exempt franchises from the requirements of AB-5, a worker classification bill.

The AAFD announced today the formation of several new franchise associations as chapters of the AAFD. Each chapter will leverage the combined voices of all its members to establish an environment of collaboration between franchisees and franchisors. The four new chapters represent franchisees from:  iTrip Vacations, Amada Senior Care, Code Ninjas, and F45 Training®.