Putting leaders in who oppress franchisees seems to be a pattern for the International Franchise Association. A year ago to date, Stephen Caldeira abruptly left his position as executive VP of communication and chief public affairs officer at Dunkin’ Brands, amid internal controversy and bitter disputes with the company’s franchisee community.

Writer's Note: As part of a letter sent to franchisees today, president Chris Dull attached a statement from NexCen's legal department regarding the company's recent announcements.

From: John Valletta, President

Date: January 7, 2008

Subject: Owners 8 Association

As many of you know, a small group of Super 8® operators has organized an independent owners group called Owners 8 Association. Because the Web site of this group has been filled with distorted, inaccurate and misleading information, I felt it was time to provide you with some facts about our brand and its programs, and to respond to some of the false and derogatory allegations being made by that group.

Writer's Note: One of the hottest topics in franchising over the past years has been whether or not the Federal Trade Commission should require franchisors to give earnings claims to prospective franchisees, prior to purchasing a unit.  Harry Rifkin gives his argument as to why earnings claims are crucial and why they should be mandatory .

Franchisee Prospects Need Financial Performance of Franchisor
By Harry M. Rifkin, Cohan, West, Rifkin & Cohen, P.C., Baltimore, Maryland Franchise Lawyer

Whether there should be Mandatory Earnings Claims (now to be referred to as Financial Performance Representations) in disclosure documents has been a subject of debate for over 15 years. When I first considered the issue, I was opposed to it because I thought that it would be impossible for the government to devise a one size fits all requirement to cover the diverse landscape of franchising and because I feared that a mandatory earnings claim would have to have so many disclaimers attached to it that it would be meaningless. However, my view has changed over the years for several reasons.

IFA's 48th Convention in Orlando Takes New Direction

WASHINGTON D.C. (Blue MauMau) - As an attendee of the International Franchise Association's 48th Annual Convention, I feel there might be an ever-so-slight turn in the direction of this huge 48-year-old franchise vessel. Representing nearly 1,300 franchisors, 10,000 franchisees and 500 suppliers, the IFA put on an enthusiastic conference demonstrating to its 3,000 plus attendees how it lives up to its mission of "protecting, enhancing and promoting franchising." While no one can refute IFA's aggressive growth in membership and financial strength, some have questioned if such growth has the right purpose behind it. Exceeding its FY07 revenue budget of $12 million, convention reports showed how it has been able to fund updated impact studies, leadership conferences, educational programs and government relations and public relations efforts. But the main obligation the world's largest franchise trade association has to members is more difficult than that. It must constantly be proving that it equally represents the franchisor and franchisee communities.