The Center for Total Quality Franchising®

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The Coronavirus Outbreak: a Force Majeure event?

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.

Important advice about Covid-19 Benefits for AAFD LifeStyle Health Plan subscribers

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

AAFD Fair Franchising Standards available from Amazon, the Kindle Marketplace and NOW, directly download from AAFD.org!

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. 

Act Today! Request Disaster Assistance for Franchisees

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.

Overview of the Families First Coronavirus Response Law

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.

Franchisee Action Required – H.R. 6201, Families First Coronavirus Response Act

As you probably know, and has been widely reported, the U.S. House of Representatives passed H.R. 6201, the Families First Coronavirus Act overnight this past Friday.  It will be debated and likely passed in the Senate on Monday, and the President has already expressed his support.  Of course, the question on all of our minds is how does it impact us as franchisees?  First, a lot will come out in the coming days, with many organizations providing their analysis of the legislation.  It’s 124 pages long, so it’s not an easy task.  As detailed analysis becomes available, I will get that to you. A link to the legislation can be found here.

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