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California Fair Franchising Legislation SB 610 Advances. Key Committee Approves Sending the Bill to Full Vote in the CA Assembly

Posted by on Jun 25, 2014 in The Franchisee Voice | 0 comments

DATELINE: June 24, 2014, Sacramento CA. AAFD sponsored fair franchising legislation, California Senate Bill SB610, has been approved by the CA Assembly Committee on Business, Professions and Consumer Protection and is now advancing to a vote before the full California Assembly. The Bill passed the California Senate last year. SB610, introduced by Senator Hannah-Beth Jackson (D-Dist 19), will protect the duty of good faith and fair dealing in franchise relationships and reinforce the right of franchisees to join and participate in franchisee associations. The bill also provides important protections of franchisee rights with regard to franchise sales, transfers and terminations. Robert Purvin, chair of the American Association of Franchisees and Dealers expressed his pleasure on learning that the legislation is now advancing, "One more step forward to protect franchisee rights in California. The reports of the death of SB-610 have been greatly exaggerated." Purvin was most pleased that the Bill was approved by a bipartisan vote of 10 in favor and just two opposed (one Democrat and one Republican voted no). The SB 610 is supported by a coalition of franchise associations and other organizations that back consumer protection legislation. Joining the AAFD is the Coalition of Franchise Associations (CFA), the Asian American Hotel Owners Association (AAHOA), and the SEIU, among others, with significant leadership from John Gordon, of Pacific Management Consulting Group. Hundreds of individual franchisees wrote letters of support for the legislation. The Bill is being vigorously opposed by the International Franchise Association and other associations that represent big business such as the California Chamber of Commerce. Those interested in learning more about the bill and listening to an audio recording of yesterday’s hearing can visit Blue Maumau. The AAFD has issued a statement in support of the bill, which states in part: Modern franchise relationships are most always governed by one-sided ‘take it or leave it’ adhesion contracts that elicit substantial monetary investment from franchise owners, but severely limit a franchisees rights in the franchise relationship. For franchisees, the franchise relationship is almost always a ‘bet the farm’ transaction whereby most franchise owners place their business and financial futures on the line in reliance on the strength of a brand and a franchisor’s promise of substantial support. SB 610, as amended in 2014, makes a small but important step in recognizing and protecting franchisee rights. Most importantly, the statute would prohibit a franchisor from attempting to waive the duty of good faith implied in all agreements. The Bill also provides important protection of franchisee rights and interests in the event of the sale and/or termination of the franchise. Long term, the Bill protects the best opportunity to create a level playing field in franchise relationships by protecting the right of effective franchisee associations with leverage to negotiate franchise agreements and relationships that respect the legitimate interests of both franchisors and franchisees. To make your voice heard in support of SB 610: Link to the California State Assembly Web Page and contacts: http://assembly.ca.gov/ For more information on SB 610, visit http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml;jsessionid=ca7b60a6b49e27e0f6c4d3189bf0?bill_id=201320140SB610...

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California Fair Franchising Legislation SB-610 “In Play” AAFD’s Robert Purvin to Testify Before California Assembly Business and Professions Committee on June 24, 2014

Posted by on Jun 23, 2014 in The Franchisee Voice | 0 comments

Sacramento – June 23, 2014 -- California Senate Bill SB-610, a piece of fair franchising legislation sponsored by the American Association of Franchisees and Dealers (AAFD), goes before the California Assembly Committee on Business, Professions and Consumer Protection on Tuesday morning, June 24, 2014. AAFD Chairman Robert Purvin has been asked to testify in support of the bill at the upcoming hearings. This is a critical time for California franchisees to demonstrate support for this important legislation by sending letters to Committee members and attending the Committee hearing. SB-610, introduced by Senator Hannah-Beth Jackson (D-Dist 19), seeks to protect the duty of good faith and fair dealing in franchise relationships and reinforce the right of franchisees to join and participate in franchisee associations. The bill also provides protections of franchisee rights with regard to franchise sales, transfers and terminations. The Bill is supported by a coalition of franchise associations and other organizations that back consumer protection legislation. Joining the AAFD is the Coalition of Franchise Associations (CFA), the Asian American Hotel Owners Association (AAHOA), and the SEIU, among others, with significant leadership from John Gordon, of Pacific Management Consulting Group. The Bill is opposed by the International Franchise Association and other associations that represent big business, including the California Chamber of Commerce. The AAFD has issued a statement in support of the bill (linked here), which states in part: Modern franchise relationships are most always governed by one-sided ‘take it or leave it’ adhesion contracts that elicit substantial monetary investment from franchise owners, but severely limit a franchisee’s rights in the franchise relationship. For franchisees, the franchise relationship is almost always a ‘bet the farm’ transaction whereby most franchise owners place their business and financial futures on the line in reliance on the strength of a brand and a franchisor’s promise of substantial support. SB-610, as amended in 2014, takes a small but important step in recognizing and protecting franchisee rights. Most importantly, the statute would prohibit a franchisor from attempting to waive the duty of good faith implied in all agreements. The Bill also provides important protection of franchisee rights and interests in the event of the sale and/or termination of the franchise. Long term, the Bill protects the best opportunity to create a level playing field in franchise relationships by protecting the right of effective franchisee associations with leverage to negotiate franchise agreements and relationships that respect the legitimate interests of both franchisors and franchisees. Franchisees who want to contact the Assembly Committee on Business, Professions and Consumer Protection can visit: http://abp.assembly.ca.gov/ More information on SB-610 is available at: http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml;jsessionid=ca7b60a6b49e27e0f6c4d3189bf0?bill_id=201320140SB610 Franchisees may also attend the Assembly Committee Hearings on Tuesday, June 24, 2014, 9 A.M., State Capitol Room...

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ServiceMaster® Franchisees Form AAFD Chapter

Posted by on Apr 22, 2014 in The Franchisee Voice | 0 comments

ServiceMaster Franchisee Owners’ Association To Provide Unified Voice SAN DIEGO, APRIL 2014 – In an effort to provide franchisees with a proactive voice, ServiceMaster® franchisees have formed a franchisee owners association as a chapter of the American Association of Franchisees and Dealers (AAFD). The association, known as the ServiceMaster Franchisee Owners’ Association (SMFOA), will work to develop stronger relationships with customers, foster a collaborative and productive relationship with ServiceMaster management, and protect each franchisee’s business equity. Longtime ServiceMaster franchisee, Jerry Winkley is the Chairman of the association’s steering committee until elections to adopt bylaws and elect an inaugural board of directors are completed in the next few weeks. SMFOA is a rapidly growing association that has gained over 100 members in just a few weeks. Its membership includes franchisees in all service lines of the ServiceMaster brand and in every region of the United States. “A key to a successful launch of a new association is the strength, passion, and credibility of its leadership,” said Robert Purvin, Chairman of the AAFD. “The men and women behind SMFOA have these qualities in abundance. The AAFD is proud to support such a motivated and high quality group of franchisees.” “I believe we have a rich ServiceMaster heritage and financial future to protect,” said SMFOA’s Jerry Winkley. ”Through SMFOA, we can speak with one voice and help the Home Office make better, long-term positive decisions that will benefit us all.” The AAFD, one of the oldest direct member franchisee trade associations in the United States, will help guide the SMFOA as it continues to grow, develop, and seek to implement its objectives. The AAFD has formed exclusive chapters for over 60 franchise systems and seeks to foster Total Quality Franchising. The SMFOA has currently received a very diverse and broad base of support from ServiceMaster franchisees of all sizes and geographic regions, including many of the top 200 franchises in the ServiceMaster network. The organization’s membership already represents well over a third of their division’s total customer level revenue (CLR), and the SMFOA expects to soon represent over half of all their division’s CLR in all of their combined divisions. The SMFOA’s objectives include: • Increasing communication among ServiceMaster franchisees to improve profitability and brand value • Compiling and sharing best practices within its membership • Providing a collective and coherent voice on behalf of its membership • Collaborating with ServiceMaster management to guide growth in a positive way and protect the rights of all franchisees • Developing a legal fund trust to engage group counsel at an affordable shared cost ServiceMaster Company is a franchisor that includes several well-known brands, such as Merry Maids®, ServiceMaster Clean®, Terminix®, American Home Shield®, Furniture Medic® and AmeriSpec®. The global company includes 6,900 company-owned, franchise, and licensed locations and is one of the world’s largest residential and commercial service networks. Its franchise network independently employs approximately 31,000 people and has served an estimated five million customers in the last 12 months. The AAFD currently supports chapters for the Merry Maids® and the ServiceMaster®...

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