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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

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 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 benefits@aafd.org, 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: http://online.wsj.com/articles/nlrb-decision-could-make-mcdonalds-liable-for-labor-practices-of-franchisees-1406660591 About SB 610: http://www.aafd.org/the-aafd-sponsored-california-fair-franchising-legislation-ca-sb-610-has-just-passed-the-california-senate/ 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

  Ginsberg Jacobs LLC Ginsberg Jacobs LLC Contact: Chuck M. Baum Work Address: 300 South Wacker Drive Suite 2750 Chicago , Illinois 60606 work Work Phone: 312.660.9403work Work Fax: 312.660.9612workfax Work Email: cbaum@ginsbergjacobs.comINTERNET Show Description Visit Website | Show Map | Company Description Ginsberg Jacobs LLC’s attorneys provide legal solutions to businesses and individuals in the practice areas of franchise litigation, business litigation, business transactions, real estate/construction and business consulting. We regularly handle matters in all regions of the U.S. We have a “small firm” approach that delivers responsive and skillful attention to clients, in order to deliver the utmost in quality legal services. [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...

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?

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...

AAFD Member Alert: NLRB General Counsel Finds McDonald’s USA may be Joint Employer of Restaurant Employees – Important Implications for US Franchise Owners

On Tuesday, July 29, 2014, the General Counsel to the US National Labor Relations Board (NLRB) issued an opinion that McDonald’s Corporation could be deemed to be the joint employer of thousands of line employees at McDonald’s restaurants due to the amount of control that McDonald’s exercises over its franchise operators. Here is a link to the NLRB release:http://www.nlrb.gov/news-outreach/news-story/nlrb-office-general-counsel-authorizes-complaints-against-mcdonalds AAFD Chairman, Robert Purvin issued the following statement to MSNBC: “The AAFD has been arguing for years that franchisor control of franchisee conduct places great stress on the validity of an independent contractor relationship, such that franchise owners (and their employees) may well be deemed to be employees (or indentured servants) of their franchisors.  So it sounds like this is a shoe I have expected would finally drop.  The franchising community needs to take stock of the separation of authority that needs to be present to create a contractor vs. an employer relationship.” An MSNBC article by Tim Noah has quoted Purvin. The article examines the issue and applauds increased government scrutiny of independent contractor relationships in franchising.  http://www.msnbc.com/msnbc/mcdonalds-fissured-workplace. The AAFD seeks to protect franchisee rights to operate as independent businesses, and to protect franchisee business ownership equity. The evolution of franchisor control of franchise systems has continually eroded franchisee rights and equity. The NLRB decision suggests that some franchisors, like McDonald’s, may have crossed a line that destroys the claim that owner-operators are independent business owners. Although not the first decision of its kind, the NLRB opinion is a ground shaking event that is reverberating within the franchising community.  In the past, the US Small Business Administration declined to treat certain franchises as small businesses due to excessive franchisor control, and the US Department of Labor has also found the presence of employer relationships in some models that claim to be franchises. Some recent court decisions, particularly in the janitorial business sector, have reclassified franchisees as employees. The International Franchise Association has issued at least two statements regarding the NLRB action. The IFA issued a Smart Brief on the subject on July 30: “The National Labor Relations Board voted that McDonald's will be a joint respondent in 43 complaints filed against independent operators. “If...

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