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Franchisee Bill of Rights, Input Requested

Franchise Community,

The Coalition of Franchisee Associations (CFA) Fair Franchising Committee has been working with franchisee leaders from multiple franchise systems to develop the Universal Franchisee Bill of Rights.

We are at the stage where we are seeking public input from the franchise community.

The intent of the Universal Franchisee Bill of Rights is to identify a fairness doctrine to evaluate whether that particular franchise agreement and/or franchise system provides adequate protection for franchisees to build, harvest and perpetuate their equity in the franchise system. Over the past 2 decades franchise agreements have become increasingly one sided, in order for franchisees to perpetuate their income and protect their investment they have had to sign agreements that eroded much of their rights as independent business owners.

The success of franchising in the last 50 years was built on a foundation of a mutually advantageous business relationship, where franchisees provided the capital, and sweat equity to build brands into brand names. Since the emergence of the terribly one sided franchise agreement, that relationship has become unbalanced; that imbalance threatens the future of franchising.

Over 100 individuals have participated in creating this current draft. Including individuals from the AAFD, AFA, AAHOA, BWNFA, DDIFO, IHFA, ILCF, MDA, NFA, NAASF, and ZBBS.

The Universal Franchisee Bill of Rights currently contains the following rights: Freedom of Association, Good Faith and Fair Dealing, Uniform Application of Brand Standards, Full Disclosure Regarding Fees Collected From Franchisees, Right to Price, Fair Sourcing of Goods and Services, Right to Renew the Franchise, Right to Transfer, Encroachment,  Ample Notice of Significant Changes and Opportunity to Exit, Fairness in Dispute Resolution, Franchise Termination Rights, and Reciprocal Termination Rights.

We are seeking input from the Blue MauMau community prior to publishing the Universal Franchisee Bill of Rights at the CFA Forum in Washington DC on June 22nd & 23rd, 2011.

The Universal Franchisee Bill of Rights will be published as a living and breathing document that will be reviewed each year by the CFA Fair Franchising Committee and will be updated and amended as franchising and franchise agreements evolve.

Please take a moment and provide us your input by 5/16/2011.

Follow this link: http://survey.constantcontact.com/survey/a07e3tq6hftgnd1bmwq/start

Thank you in advance for your interest and participation.

Jim Coen & CK Patel
Co-Chairs; CFA Fair Franchising Committee

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