NEWPORT NEWS, Va. (Blue MauMau) - The ex-director of the Federal Trade Commission's franchise program, Steve Toporoff, credited a major change in the new franchise rule solely to the efforts of the American Association of Franchisees and Dealers. Toporoff made his comments praising the association when presented with a Total Quality Franchising award Monday night at the American Association of Franchisees and Dealers' 16th Annual Conference in Newport News, Virginia.

Said Toporoff, "All along the way in promulgating the franchise rule, the Federal Trade Commission was always concerned that the voice of franchisees be heard. You could always get franchisors to show up at hearings and to write comments but it was somewhat difficult to get franchisees, at least when we started this process in the early 1990s. But Bob Purvin, in particular, and the AAFD were always there from the very beginning [in efforts to amend the franchise rule]."

The new franchise rule begins July 1 of this year. For the first time, the FTC will require that franchisors reveal independent associations in the franchise disclosure documents presented to prospective franchise owners.

Paul Steinberg, a former Subway franchise owner and a franchise attorney based out of New York. observes, "The existence of independent association in a franchise system is a positive sign. An association allows for collaborative efforts, and in eliminating the divide-and-conquer franchisor model, the climate becomes more cooperative and less adversarial. In the long run, a franchise system that is built on collaboration has a much better chance of lasting than compared to a system that constantly fights among itself."

Toporoff, a spokesperson for the FTC, continued, "Including franchisee associations was not an issue on the FTC's radar screen. Bob and others brought to our attention how critical it is that prospective franchisees have another source of information in which they can weigh the claims that franchisors make about their system. Bob [Purvin] and the AAFD all along the way helped us in not only framing the issue, but also in improving it."

"Although a private association of franchisees and franchisors, the AAFD is widely regarded as one of the most transparent associations in franchising, where sessions are open to not only members, but to the public", observes Paul Steinberg.

Toporoff thought the future would be a better one for prospective franchisees because of the AAFD and its contributions to a more open investment environment through providing information on franchise independent associations. "I think a time will come in the next few years in which it becomes routine for franchisee associations to be disclosed," he said. "It is not just franchisee associations. It is independent franchisee associations. All of you, by supporting that effort, have really done a service to prospective franchisees in the future who I think are really going to benefit from this."