I have compiled a list of the oft-made mistakes that both franchisors and potential franchisees make during the all-critical validation and expectations-setting process. Although no one can completely error-proof their decision, many of these mistakes can be easily mitigated a priori. And, if not, it can be the beginning of an unhappy, short-lived and financially underwhelming nuptial period.

As our friend, Keith Miller, principle of Franchise Advocacy Consulting, likes to say, there are far more franchisees in this country than franchisors. When we join our voices together, we can be a powerful and persuasive political force. It’s time to raise your voice to support an exciting new bill that was just introduced on July 31, 2019 in the United States Senate by Senator Catherine Cortez Masto (D-NV). While the bill’s overall aims are modest, the changes—if enacted—will require franchisors to provide more transparency to prospective franchisees or face financial consequences. 

Last week, we sent out an urgent call to our membership to contact your Senators and encourage them to attend a hearing held by the US Senate Banking Subcommittee on Economic Policy. The hearing was titled, “Economic Mobility: Is the American Dream in Crisis?”

The New York Times recently released a scathing article that shines the light on systematic franchisor abuse at the world’s largest fast-food company, Subway.

The theme of the 2019 AAFD Franchisee Leadership Summit is “Protecting Your Franchise Equity,” but we very well might have called it “Reclaiming Your Equity.” Truly, the important benefits of business ownership expected by franchise owners have been under siege for decades, and franchisees continue to see serious erosion of their ability to increase and secure the value of their franchise investments.

What looked like the surprise franchise legislative effort for the year quickly stalled and is now on hold until next year. State Senator Chris Elliott introduced Senate Bill 129, the Protect Alabama Small Business Act, to specifically create protections for franchise owners in the state.

For over 25 years, the AAFD has pursued a market driven approach to reforming the franchise community. Unfortunately, we live in a political climate dominated by franchisor influence and a dearth of franchisee associations rallying together in common cause. The laws and legal precedents continue to strongly favor franchisor interests. The importance of franchisee associations to aggregate their combined resources under a common banner has never been more essential.  

Franchisors have used Chapter 11 bankruptcy to both restructure their debts and to demand concessions from franchisees. A new Supreme Court decision could take away, or ... Read More →