Politics, events and news that affect franchisee rights
Tim Hortons' U.S. franchisee association, the Great White North Franchisee Association USA (GWNFA USA), has stated that they have no comment on the recent revisions to their lawsuit for fear of retaliation from their Canadian-based franchisor. And no wonder!
Disgruntled American, Japanese and Australian 7-Eleven franchisees have been in the news. In the U.S., executive board members of the National Coalition of Associations of 7-Eleven Franchisees (NCASEF) as well as 7-Eleven franchise owner association leaders have been urging Congress to strengthen federal protection of franchise owners.
The “Protect Alabama Small Business Act” has everything to do with protecting the life savings of American families who enter franchising.
When he was a franchise owner, Alabama state senator Chris Elliott (R) experienced first-hand the lop-sided relationship that is all too common between franchisors and franchisees. Now a senator, he wants to do something about it.
He writes:
Unfortunately, it turned out that my franchisor was not interested in the long-term success of my business. They were interested in corporate profits, regardless of how it impacted the small business owners who operated their franchises.
March 26, 2019 – Today, franchise owners of Max Muscle® Nutrition have announced the formation of Max Independent Franchise Owners Association (MaxIFOA, Inc.), a self-funded alliance to represent their interests with the South Dakota-based company. The organization, while working with Max Muscle Nutrition®, will be a unifying voice of franchisees, focusing on franchisee profitability while enhancing the brand to positively impact the system.
Franchise remodeling disputes have recently littered the franchise litigation landscape. The source of conflict in franchise remodeling disputes is not the ‘control’ issue but rather is it worth it.
The franchise industry is unique in so many ways, but that is not always good. For most, buying a franchise, next to buying their home, is the biggest investment they will make. Unlike all other investments they make, they risk everything in buying a franchise, every asset they own, and then some. You ask, how can that be possible? Besides the personal guarantees, many contracts contain a clause, or wording, that enables the franchisor to collect liquidated damages, or future unearned royalties. If your franchise business fails, and you lose your investment and more, the franchisor has
Multiple news stories have reported that hackers breached Marriott’s security and stole customer information. Marriott may face claims and liability from customers whose data was taken.
McDonald's independent franchisee association, the National Owners Association, has heated up fast. Over 400 owners attended the first meeting in Tampa, Florida, just two months ago. The two-day meeting which ends today in Dallas has drawn around 1,300, according to people there.
A pair of restaurant journalists take a deeper look at what seems to be a turn toward elevated tensions between restaurant franchisors and franchisees. They discuss such brands as McDonald’s, Jack in the Box, Papa John’s, Applebee's, Tim Hortons and Subway.
Restaurant Business Executive Editor Jonathan Maze leads off the 34-minute podcast by asking Editor at Large Peter Romeo of the same publication:
(1:41) What do you think is going on with companies such as Jack in the Box and McDonald’s and others that is leading to all of this tension?