Log In / Register | Feb 8, 2012

What's Wrong With Franchising in 2012!

What’s wrong with franchising in 2012? Perhaps I would invoke the words of Charles Dickens and assert that franchising is experiencing “the best of times and the worst of times."

The Importance of Franchisee Associations

Effective and respected independent franchisee associations that are recognized participants in a collaborative franchise culture are deserving of significant marketplace recognition.

The AAFD's Focus on Fair Franchising

There are those that feel that the AAFD inadvertently may lure prospective franchisees to franchise systems that do not have proven business models.

AAFD Suspends Cuppy’s Coffee Accredited Contract Status

SAN DIEGO (Blue MauMau) - The American Association of Franchisees and Dealers announced today that it has suspended its recognition of Cuppy’s Coffee and More, LLC as an AAFD Accredited Contract recipient, pending a determination of the Association’s Board of Directors that AAFD’s Accreditation of the Cuppy’s contract should be withdrawn.

The AAFD Has Graded About 60 Franchise Agreements

Recently a Bluemaumau guest asked the following question:

Pending Report Regarding Cuppys Coffee Controversy

I have just returned from an ‘Internet free’ few days away following the AAFD Annual Conference and have discovered that the Blue MauMau blogs have been actively ‘on top’ of the Cuppy’s Coffee presence at our conference.

The AAFD Strategy for Franchise Reform

I have read with great interest the debate about the effectiveness of the AAFD.  I have appreciated those comments that understand what we are trying to accomplish, and am frustrated by those detractors who are attacking an important initiative to promote fair and balanced franchise agreements that actually respect franchisee rights and interests.

Some Words From AAFD On Cuppy's Coffee and Elite Manufacturing

Bob Purvin, Chair of the American Association of Franchisees and Dealers, Speaks About AAFD's Relationship with Cuppy's Coffee and Elite Manufacturing

First, I would like to say at a personal level – especially as the first franchise authority to expose abusive franchise practices in my book The Franchise Fraud in 1994- that I am delighted that Sean Kelly has now got religion. Many of you know that the AAFD was born out of a realization that the practice of franchising was seriously amiss – facts well documented in my book.

But the AAFD doesn't exist just to complain about franchisor practices. We recognize that many franchise systems do offer fair and collaborative practices – but their franchise agreements or contracts don't reflect this. The AAFD's Fair Franchising Standards seeks to correct, supplement and at times outright change a franchise system's culture.

Registration

Franchise Registration: What It Is, Who Requires It, and Its Limitations for a Franchise Investor

Editor's note: Robert Purvin, Chairman of the American Association of Franchisees and Dealers, defines franchise registration and its limitations to franchise investors.

Who Requires Franchise Registration

The Federal Trade Commission (FTC) and some fifteen states in America require franchisors to provide franchise buyers with a pre-sale franchise disclosure document. The stated purpose of pre-sale disclosure is to provide prospective investors with material information necessary to determine the viability of an offered franchise opportunity. Unfortunately, too often franchise disclosure documents are effectively used to insulate franchisors from oral disclosures that may have been made, or from the failure of a prospective franchisee to perform full due diligence of a deficient opportunity.

Separating Good Franchises From Bad

Chairman explains benefits of AAFD to franchisee community

I've been away for a week, and I return to discover the AAFD is being described as a Chipmunk that is doing little to impact the quality of franchise opportunities. Our principal accuser has never contacted the AAFD, nor taken the time to understand what we do and what we stand for. Please allow me to set the record straight:

1. The AAFD's Fair Franchising Standards serve as an available tool (even available to Mr. Solomon) to help prospective franchisees to separate the good from the bad in franchising. The AAFD Standards are available for free from many sources including the AAFD website, www.AAFD.org.

2. AAFD Seal Recipients must earn a 75% approval rating from their franchisee network! Franchisor's cannot 'buy' AAFD approval, at least not from the AAFD! Were it otherwise, many more than 20 companies would have earned the AAFD Seal. In fact, the AAFD offers the only true accreditation program for franchisors in the world.

3. The AAFD only recommends companies that have received the seal. If a franchisor hasn't met our high standards, our recommendation is "Just Say No!"