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AAFD Standards Committee Put in Awkward Position

The American Association of Franchisees and Dealers' 16th Annual Conference has convened in Newport News, Virginia and its Total Quality Franchising awards were presented Monday night.

It was a joyous occassion with a happy message of franchising in a fair way, with one exception. AAFD sent a strong metaphor—a song and dance on the podium numerous times with Cuppy's leaders performing and speaking alongside AAFD leaders.

AAFD Awards Banquet in Newport News, VA 2008
AAFD Awards Banquet in Newport News, VA 2008

With its standards meeting scheduled for Tuesday and Wednesday, such action raises the question of whether the outcome of Cuppy's being a member in good standing has been pre-determined. Members of AAFD previously had said on Blue MauMau that everyone could present and discuss in a meeting open to the public whether Cuppy's has met AAFD's fair franchising standards over this past year.

Dale Nabors, CEO of Cuppy's Coffee began his speech, "Bob [Purvin] asked me to say this in two minutes or less..."

One naturally asks whether this might be an attempt by the chair to influence the standards committee members attending the banquet.

Perceptions matter. A perception of trying to rehabilitate an image was created from the very moment that Cuppy's president, Doug Hibbing began to sing on the stand. That perception was reinforced when its CEO began his speech.

Nabors admitted, "In my opinion, we [Cuppy's] weren't living up to AAFD standards. Cuppy's had a desire to. I'm here tonight to say that we are going to commit to living up to the AAFD fair franchising standards."

Sounding very similar to commitments made at the AAFD conference in Dallas last year where Cuppy's president Doug Hibbing and his boss's wife, Mrs. Morgan, said that they were honored and that they would change company practices to meet AAFD standards, now Hibbing's new boss, Mr. Nabors says, "Next year we hope our franchise review and our franchisees say we deserve to be here."

The problem for the standards committee on Tuesday and Wednesday is that they must deal with the consequences of the awards banquet.

The issue of whether Cuppy's violated the association's standards has been resolved by the voice of its new CEO. Yes.

The issue for the standards committee is whether the awards banquet mea culpa puts the issue to bed. For the standards committee to do nothing will undermine not only its credibility in this instance but also will lead to the perception (rightly or wrongly) that what matters is a company's relationship with Bob Purvin and not its adherence to AAFD standards.

The statements made tonight, coupled with the song and dance metaphor, place not only the standards committee but Robert Purvin in an awkward position. How they respond over the next two days of meetings may well influence the future of the organization itself.

After Dale Nabors' apology, AAFD's chairman Robert Purvin took the podium. He did not respond to Cuppy's admission, but simply said, "[Dale], I'd like you to present this next [fair franchising] award..."

An award was given out this evening by a presenter whose company by his own admission has not lived up to AAFD standards. Such a presentation undermines the value of the association's fair franchising awards.

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