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Log In / Register | Apr 20, 2014

AAFD Supports California's SB 610 Good Faith in Franchising Bill

The American Association of Franchisees and Dealers (AAFD) is pleased to co-sponsor Senate Bill SB610, and I am writing to voice my support of legislation for balanced franchise relationships in California.

Franchising Myth Seven: You Lower the Cost of Doing Business through the Power of Group Purchasing

The myth that owning a franchise guarantees to lower your cost of doing business due to the synergies of group purchasing that will benefit the entire franchise network is, quite sadly, the most recent addition to the Franchising Hall of Shame.

Franchising Myth Six: Many Franchises Means Critical Mass of Market Penetration

Too many prospective franchise buyers I know assume that a franchise is successful because it is “big enough” to sell franchises or because it already has hundreds of franchises in operation.

Franchising Myth Five: Franchising Provides a “Proven Franchise Business System”

Franchising provides a "proven franchise business system" is a myth I hear from prospective franchisees all the time.

Franchising Myth Four: The Typical Franchisee Gains a Valuable Brand Asset

Let's play a little game. Review Blue MauMau's alphabetized directory of franchises. HERE is the link. Take a few minutes to browse and then ask yourself how many companies you recognize. When you're done, come back to this article.

Franchising Myth Three: Franchisees Own Their Franchised Business

Many franchisees consider themselves to be business owners. A franchisee might hire and manage employees, sign the lease on a store or restaurant, handle customers, keep the books and take home profits at the end of each month.

Franchisee Advocate to Testify Before the California Senate Judiciary Committee

The American Association of Franchisees and Dealers (AAFD) has signed on as a co-sponsor of California Senate Bill SB610, fair franchising legislation pending in the California legislature.

AAFD Supports California's Franchise Bills

The American Association of Franchisees & Dealers (AAFD) is asking California franchise owners to support two pieces of franchising fairness legislation recently introduced in the California State Senate and State Assembly.

Franchising Myth Two: In Business for Yourself but Not by Yourself

Many prospective franchise owners are attracted to the concept of buying a franchise because they believe it combines the freedom of owning a business with the safety of a benevolent guiding hand. Franchisors cultivate this concept. The catch phrase of the International Franchise Association is “In business for yourself, but not by yourself!”

Franchising Myth One: Franchises Are Safe Investments

Perhaps the most common and pervasive franchise myth is that franchising per se is a safe investment. Fed by a steady diet of industry hyperbole, the conventional wisdom that feeds this myth contends that when you buy a franchise you are investing in a proven brand and an established business system that will virtually guarantee business success.