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The AFA advocates for and provides testimony in favor of changing the rules and laws that govern franchising on both the state and federal level. In 1995 the AFA organized its franchisee and dealer membership nationwide, attaining the election of 137 delegates from 27 different chains to attend the White House Conference on Small Business in Washington, DC where franchisee legal issues were among the final 60 recommendations presented to the President and Congress for immediate action. In 1996 franchisees from 30 different chains worked to develop the AFAs Model Responsible Franchise Practices Act ("Model Act"). The purpose of the Model Act is to promote the growth of franchising through a uniform set of standards. |
Frequently Asked Questions
about the American Franchisee Association (AFA)
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In September of 1992 the Chair of the U.S. House of Representatives Committee on Small Business held a franchisee listen-in to determine the issues and concerns of small business franchisees. (The Committee on Small Business had been holding hearings on franchising for close to two years at the time.) The leadership of several different franchisee associations traveled to Washington, DC to talk with the Congressman. Susan P. Kezios invited each of the franchisee leaders to a private luncheon and asked the group if they felt the time was right to form a trade association of franchisees and dealers. |
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franchisees answer was a unanimous, yes.
Susan promised the group that she would not make an announcement
until 5,000 outlets were signed as members of the association.
For the next 90 days, she traveled to talk with franchisee
association leaders and their boards of directors to encourage their
participation in the new association.
In February of 1993, the leadership of a number of independent franchisee associations met with Susan in San Francisco, California for the first organizational meeting of the American Franchisee Association (AFA). Shortly thereafter, the AFA merged with the National Alliance of Franchisees and Dealers (NAF&D), formerly known as the National Franchise Association Coalition (NFAC), which was originally founded in 1975. |
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The leadership of the founding association members of the AFA determined that the routine avenues to protecting their business interests were failing them in many cases. A franchisee had two choices at the time: either capitulate to the franchisors demands or litigate with them. Neither choice was satisfactory. The AFA was formed to improve the business conditions for franchising generally, while working diligently to protect the economic interests of franchisees. The AFA accomplishes this goal by providing two additional avenues to resolve potential conflicts. First, the AFA constantly advocates the franchisees position. Second, the AFA communicates with federal and state lawmakers about the scarcity of rules/laws governing the franchisor-franchisee relationship. Both independent associations of franchisees as well as individual franchisees belong to the AFA. Association members in the past have include such groups as the Association of Kentucky Fried Chicken Franchisees (AKFCF), the Dennys Franchisee Association, the Dominos Franchisee Association (DFA), the Roundtable Owners Association (RTOA), the National Association of Sonic Drive-In Franchisees (NASDIF), Dunkin Donut International Franchise Organization (DDIFO), Independent Hairdo's Franchisee Association (IHFA), Popeye's Independent Franchisee Association (PIFA), the National Coalition of Associations of 7-Eleven Franchisees (NCASEF), the Vision Care Franchisee Association (VCFA), the Asian American Hotel Owners Association (AAHOA), the SUPERCUTS Franchisee Association (SFA), the National Association of Satellite Contract Owners [H & R Block] (NASCO) and the ADDECO Franchisee Association, just to name a few.
There are only two reasons why a franchisee wouldnt join the AFA. The first is fear of retaliation by the franchisor. Many franchisors use aggressive intimidation tactics to routinely deny their franchisees a basic constitutional right--the freedom of association. Many franchisees decide the internal political pressure from their franchisor outweighs any benefits they may gain from joining the association. Second, some franchisees receive favors from their franchisor in the form of additional locations or other special deals so long as they tow the company line and stay politically correct by not joining a trade association of fellow franchisees. In order to alleviate both of these problems the AFA developed an anonymous category of membership. Once an individual franchisee or an entire association indicates they want to remain anonymous, neither the public, nor their franchisor will ever be any the wiser. These franchisees realize the value of the AFA and want to do their fair share in supporting the AFA on behalf of franchisees everywhere--they just prefer to do it anonymously.
You dont buy fire insurance when the shop is burning down. The Army, Navy, Air Force and Marines dont go on extended vacation when the United States in not engaged in direct conflict. The AFA is the best insurance franchisees can buy to ensure that certain franchisors, their attorneys and their lobbyists arent the only ones providing input into the rules and laws that govern franchise contracts.
The AFA was founded by successful franchisees who want to continue in the business of franchising. Since its incorporation the AFA has had a membership category for franchisors. There are many franchisors who have no problem with the AFAs agenda. Ask the franchisor trade association how long theyve been in business--since 1960. Then ask them how long franchisees have been allowed as members--since 1993. It took the franchisor trade association decades to welcome franchisees as members--and they did so only in 1993 after the AFA announced its formation. The franchisor trade association brought in franchisees not to protect franchisees best interests, but to protect franchisors best interests.
The AFA often sponsors events for franchisees to gather information, make contacts and gain insight. The AFA's Multi-Unit Operators Retreat (MORE) for those franchisees that own twenty franchised units or more. This event is designed for larger, multi-unit operators of franchise systems. Periodically the AFA holds Legislative Affairs Days (LAD) in Washington, DC. These events are designed for franchisees to talk with their Members about issues of importance to small business franchisees. The AFA also hosts a Franchisee Leadership Summit for the leaders of franchisee associations to come together and discuss issues of importance. AFAs Franchisee Legal Symposium (also part of the Leadership Conference) is designed to educate franchisees as to their legal and contractual rights.
Franchisees and franchising are already benefiting from the AFA. The fact that the AFA exists causes franchisors to be more reasonable, factual and fair in their dealings with franchisees Other features of AFA membership: the AFA advocates franchisees positions to the public, the media and the government; the AFA communicates with its members via a bi-monthly AFA Enews ; the AFA maintains a list of experienced franchisee attorneys on its website; the AFA helps franchisees form independent trade associations and assists them with both short and long term strategic planning to ensure the organizations future viability. The AFA is the single most effective means of advancing the shared interests of all franchisees. The AFA is the franchisees watchdog. Learn about becoming a member. |
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