AAFD Franchise Tip #8: Franchisee Bill of Rights
The American Association of Franchisees & Dealers (AAFD) is a non-profit organization that acts to educate the public regarding fair franchise practices, quality franchise opportunities, and to expose the unethical practices. The AAFD recommends that individuals considering franchise opportunities should look for 8 elements to consider in a franchise. They believe all 8 are critical in selecting a good franchise opportunity.
TIP #5: Franchisee Bill of Rights.
According to the AAFD:
Select a franchisor that supports the AAFD’s Franchisee Bill of Rights and agrees to respect these rights as they apply to your franchise.
* From “8 Things to Look for in a Franchise” by the American Association of Franchisees and Dealers.
AAFD Franchisee Bill of Rights
The Franchisees of America, representing the best of the American entrepreneurial spirit, hereby recognize and demand a basic minimum of commercial dignity, equity and fairness. In recognition thereof, the franchisees of America do proclaim this Franchisee Bill of Rights as the minimum requirements of a fair and equitable franchise system:
- The right to an equity in the franchised business, including the right to meaningful market protection.
- The right to engage in a trade or business, including a post-termination right to compete.
- The right to the franchisors loyalty, good faith and fair dealing, and due care in the performance of the franchisors duties, and a fiduciary relationship where one has been promised or created by conduct.
- The right to trademark protection.
- The right to full disclosure from the franchisor, including the right to earnings data available to the franchisor which is relevant to the franchisees decision to enter or remain in the franchise relationship.
- The right to initial and ongoing training and support.
- The right to competitive sourcing of inventory, product, service and supplies.
- The right to reasonable restraints upon the franchisors ability to require changes within the franchise system.
- The right to marketing assistance.
- The right to associate with other franchisees.
- The right to representation and access to the franchisor.
- The right to local dispute resolution and protection under the laws and the courts of the franchisee’s jurisdiction.
- A reasonable right to renew the franchise.
- The reciprocal right to terminate the franchise agreement for reasonable and just cause, and the right not to face termination, unless for cause.
THE AMERICAN ASSOCIATION OF FRANCHISEES AND DEALERS HAS DEVELOPED THE FRANCHISEE BILL OF RIGHTS AND WORKS TO PROMOTE AWARENESS AND ACCEPTANCE OF IT AMONG THE FRANCHISING COMMUNITY AND THE GENERAL PUBLIC.
For more information on the American association of Franchisees and Dealers, visit AAFD. ORG
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