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How Is Your Franchisor Using Your Marketing Fund?

Most franchisees are required to pay into an advertising marketing fund, which the franchisor controls. What is your franchisor doing with all that money, and is it directly benefiting your franchise? In a perfect world, your franchisor would use the funds exclusively for advertising and marketing the brand, and you (and other franchisees) would have input in determining how the money was used. Let’s make this perfect world even better and say that the franchisor would even provide regular reports to you about fund activities. 

2017 AAFD Franchisee Leadership Summit Expected to Be the Largest Ever Gathering of Franchisee Association Leaders in History

2017 AAFD Franchisee Leadership Summit Expected to Be the Largest Ever Gathering of Franchisee Association Leaders in History

Dec 16, 2016

The AAFD’s “Franchisee Leadership Summit” will take place on Wednesday, May 3rd, 2017 at the Renaissance Indian Wells Resort and Spa in Indian Wells, California as part of the organization’s three-day annual conference and 25th anniversary celebration.

AAFD Members — Have You Taken Advantage of Your FREE Franchise Attorney Consultation?

We’ve put a lot of effort into drafting some of the best franchise attorneys in the country to participate in our Franchisee LegaLineSM Network. As a member of the AAFD, you can get a complementary consultation with an attorney in our network. Don’t let these great minds go to waste, especially if you need help reviewing a franchise agreement or are considering taking legal action against your franchisor.

Franchise Legal Support

Franchise Legal Support is dedicated to providing comprehensive services for franchisees throughout California and the nation. We can help you through the process of buying a franchise, reviewing an agreement, or negotiating the terms of a franchise agreement as well as any disputes that arise along the way.

Join AAFD in Urging CA Governor Brown to Approve SB610 Fair Franchising Bill

To All California Franchisees: Download the petition urging Governor Brown to approve CA Senate Bill 610 – a bill to protect franchisee equity in your franchised business. SB610 petition 1 file(s) 82.19 KB Download SB610 Petition Download CA Senate Bill SB610, which is sponsored by the American Association of Franchisees and Dealers has now passed the state legislative branch is now on Governor Brown’s desk for approval. Franchisor advocates are bringing substantial pressure on the governor in a last ditch effort to defeat SB610. This is a critical time for California franchise owners to raise their voices in common cause to hold the line on oppressive franchise agreements, and to protect your ownership equity in your franchised business. Please scan and email your signed petition to, or fax your signed petition to 866-855-1988, and we will deliver our petitions for you. This will take you only a few very important moments, but could be of significant value to the protection of your franchise...

The AAFD’s Robert Purvin To Appear On The Willis Report On The Fox Business Network

AAFD Chairman Robert Purvin, author of The Franchise Fraud, will be interviewed on The Willis Report on the Fox Business Network (Tuesday), August 26th, which will be presented live between 5 and 6 PM Eastern Time (2-3 PM Pacific), in connection with a story that broke today in the Wall Street Journal by Sarah Needleman titled, “Is Buying a Franchise Riskier Than Ever?” The Willis Report is hosted by Gerri Willis on the Fox Business Network and bills itself as a watchdog for consumers and tax payers. AAFD Members and friends are invited to tune in and join the conversation through email, Facebook and Twitter to make your voices heard in support of franchisee rights and interests. The last few weeks have been very exciting for those seeking to protect the rights of franchise owners. At the end of July the General Counsel for the National Labor Relations Board (NLRB) determined that McDonald’s may be the joint employer of thousands of McDonald’s restaurant employees because of the substantial control exerted over franchisees. Just last week the California senate passed Senate Bill 610, which provides important protections and expanded rights to franchisees. The AAFD has stayed on top of these exciting developments and has even helped pilot some of these changes, as in the case of SB 610, which the AAFD sponsored. It seems like the media are starting to follow the larger story of franchisee rights. About the McDonald’s Decision: About SB 610: About The Willis Report:...

The AAFD Sponsored California Fair Franchising Legislation (CA SB-610) has just passed the California Senate

August 21, 2104 Sacramento CA. Stop the Presses!!! The AAFD Sponsored California Fair Franchising Legislation (CA SB-610) authored by State Senator Hannah-Beth Jackson (D) has just passed the California Senate by a lopsided vote of 23-9!  Having passed the California Assembly on August 14, the bill now goes to Governor Jerry Brown for approval. SB610 guarantees the right of franchisees to participate in independent franchisee associations and invalidates any attempts by franchisors to waive the duty to act in good faith with respect to its franchise agreements.  But most importantly, the bill provides real compensation to a franchisee who is either terminated unfairly, or is frustrated in a reasonable effort to sell a franchised business. The bill was sponsored by the AAFD, and was heavily supported by a coalition of associations including the Coalition of Franchisee Associations, the Asian American Hotel Owners Association, a myriad of independent franchisee associations and several labor unions and small business advocacy groups who stood with franchisees throughout California. Although similar legislation has been passed in a few other states, California is the first really big prize, and the International Franchise Association, the trade organization representing franchisors, aggressively opposed the passage of SB610, outspending franchisee interests by a wide margin. A grateful Robert Purvin, Chair and CEO of the AAFD, appreciated the significance of SB610, “Today we celebrate a monumental success in protecting the rights and equity of franchise owners in this state, a victory that was achieved against long odds and aggressive opposition.”  Purvin added, “While it is comforting to know we can make a difference with lawmakers, our long term goal remains to achieve fair and balanced franchise relationships that respect the legitimate needs of both franchisors and franchisees so that we can jointly promote and praise a franchise community that respects the interests of its...

Charles M. Baum

  No results. [spacer size="20"][/spacer] Charles M. Baum’s Notable Cases: [spacer size="20"][/spacer] Franchise Litigation: Defense of a matter for a restaurant franchisee involving trademark infringement, breach of contract and a non-competition clause.  The client’s motion for summary judgment was granted as to breach of contract, while the opposition’s motion for summary judgment was denied on the count of seeking to enforce non-competition clause and to shut down client’s operations. Reported at Jake Flowers, Inc. v. Kaiser, 2002 WL 31906688 (N.D. Ill. 2002). Defense of a matter for truck rental franchisee involving alleged trademark infringement, breach of contract, and violations of non-competition clause.  Mr. Baum successfully prevented the issuance of a temporary restraining order seeking to shut down client’s operations. Prosecution of a matter for national retail franchisor involving trademark infringement, breach of contract and non-competition clause. Chuck negotiated the resolution of matter during the hearing on motion for a temporary restraining order, which set restrictions on the opposition’s operations. Matter involving alleged infringement of intellectual property, including alleged counterfeiting of parts and the conversion of royalties. Business and Commercial Litigation: Commercial matter for breach of a multi-million dollar management contract, fraudulent misrepresentation, fraudulent concealment, and piercing the corporate veil based on commingling and under-capitalization of assets. Mr. Baum negotiated favorable settlement after significant nationwide discovery. Defense of a multi-million dollar commercial matter involving client’s alleged breach of a contract under which the client built purportedly defective motors. The case also involved the prosecution of counterclaims against the plaintiff for breach and a third-party contribution claim against one of client’s suppliers for supplying defective parts, which were the root cause of the motor failures. Mr. Baum negotiated favorable settlement after significant nationwide discovery. Successful defense of client in an action by a losing bidder, which sought to set aside, the successful construction bid for a public project based on unfounded allegations of bid rigging. The ruling allowed the client’s project to immediately proceed. Post-Judgment Collection Litigation:  Matters locating and collecting monies for clients on outstanding judgments. Matters seeking to set aside fraudulent transactions and seeking to pierce fraudulent entities. Matters defending judgment collection for debtor entities. Construction Litigation:  Various matters involving contracts and workmanship on...

Franchisees Win in California Assembly!!

Posted Thu, 2014-08-14 23:51 by Don Sniegowski, BlueMauMau SACRAMENTO – California's assembly voted Thursday morning to pass a bill that aims to strengthen good faith and fair dealing between franchisors and franchisees. The final tally was 41 ayes and 27 nays. Senate Bill 610 has now been passed by the Senate Judiciary Committee, a full vote on the Senate floor, the Assembly Judiciary Committee, the Assembly Business, Professions and Consumer Protection Committee and now a full vote on the Assembly floor. Please Click here to link to the full article posted on...

Do You Really Need A Franchise?

Do You Really Need A Franchise?

Aug 7, 2014

Starting a business requires a lot of gumption. Entrepreneurs often quit stable jobs, invest their savings, or max out credit cards to get a business started, and endure months or even years of furious work without much return. A franchise, in contrast, can seem like a safer bet. In return for a franchise fee and ongoing royalties, a franchisee expects six very important benefits in return: a recognized brand, an established and vetted operating system, group buying power, marketing power, a protected market, and a franchisor that is supportive and dedicated to the success of their franchisees. These six factors can have a big influence on whether or not a franchise succeeds. As we’ve explored in the past on the AAFD Franchise Voice Blog, franchise organizations, like the International Franchise Association, have drastically inflated the success rate of franchises. In fact, the Small Business Administration has found that franchise businesses fail at a similar or greater rate than independent businesses. So, is a franchise always worth the investment? That depends on the six factors listed above. If your franchise can’t deliver a solid brand, an effective operating system, and franchisee buying power, then you might be better off simply starting your own business. Brand Robert Purvin, Chairman of the AAFD, recently told me about a call he received from a man – let’s call him Steve – interested in purchasing a janitorial franchise. The franchise was located in the Midwest, but Steve wanted to start his business in Southern California. Steve asked Robert’s advice on whether he should move forward with the franchise purchase or not. Robert asked Steve, “Has anyone in Southern California heard about XYZ Cleaning Company?” Steve’s answer, of course, was “No.” A proven brand is not always an essential expectation, but the value of a brand should be reflected in the ‘price’ of the franchise opportunity. Franchisees should also take into consideration whether it is worth the effort to help a new franchise grow its brand awareness or do the same amount of work on behalf of their own business. If Steve does open an XYZ Cleaning Company, he will need to build brand awareness, customer by customer, as well...