I understand where Mr. Purvin is coming from now! I greatly respect him and the work he is doing. I would hope that the independent franchise associations would understand that their financeial support of the AAFD and their goals would help all franchisees, and that franchisees desperately need representation in the Halls of Congress by an organization like the AAFD.
The AAFD knows that trying to change the regulatory process through the legislatures is a losing battle and one that, to date, no organization has been able to fight and win. The IFA has just too much power and too much money and franchising as a business model feeds the economy and the power structure of the economy, the banks and lenders, the landlords and the developers as well as the venture-capitalist franchisors. The IFA has the money to address the courts by way of the Amicus Brief and they lobby the courts as well as the Congress and protect the law that protects the franchisors.
I have no doubt that Mr. Purvin would like to see changes in the regulatory policy because I have read his letters to the FTC. I understand, however, that the "fair contract" is a means to improving the relationship between the franchisor and the franchisee and this in itself is an admirable goal and achievable through the process of AAFD accreditation and the seal.
Mr. Purvin has shown himself to be an honest man in his book "Franchise Fraud" and in his public comments to the FTC. I know that he will do everything possible to prohibit franchisors from selling unviable products under cover of the AAFD accreditation and Seal and that the AAFD Disclaimer will be in BOLD Caps to warn naive and inexperienced investors that the AAFD Accreditation or the Seal does not indicate that the franchise is a worthy investment vehicle. It is only one factor in the due diligence package and the FTC and the State Legislatures should strongly warn new buyers of franchises that due diligence with experts is necesssary to review the FDD's. This is the least that they can do. Someone should have a fiduciary duty to the franchisee.
The AAFD Seal is a good start to a fairer relationship and only when franchisees become more proactive and supportive with funds will its real potential be realized. Those franchisors who are not interested in fair relationships might be brought to understand that their competitors are capturing the franchisees and their capital and labor with the fairer contract that bears the AAFD Seal.




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