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AFA Enews 5 Vol. 1, No. 1 |
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October 6, 2003 |
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This new column is totally dedicated to questions from our readers. Each month we’ll choose some questions and share the answers with you. E-Mail
your franchise-related question to Q. We’re frustrated! We’re restaurant owners and I’m President of our independent franchisee association. Corporate is putting all its money into advertising nationally – as opposed to locally – which is hurting our regional stores. What can we do about this?A. What does your contract say about the use of advertising funds? Franchise contracts have a funny way of stating the franchisee shall do this and shall do that. But the franchisor usually has an option. In other words, if the contract states that your franchisor may use advertising funds in any way they wish, they probably have a legal right to do so. However, the fact that you have an independent association is a plus. Franchisees must have access to an independent franchise group and counsel in order to act together to deal with common problems. We’d suggest having an attorney who specializes in representing franchisees review your contracts. With the AFA’s help, a good franchisee attorney can arrive at some creative approaches to exert pressure on the franchisor that will give your association a say in how advertising funds are spent. No matter what tack you take, remember it is essential that your members stick together. Good luck! Q. There’s a group of us that wants to form a franchisee association. What do we do now?A. The AFA has a 70-page e-booklet, “Forming an Independent Franchisee Association…a Turn-Key Approach.” It |
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The contract defines the relationship between you and the franchisor.
In some cases it places you at the mercy of your corporate owner. |
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To contact us: |
Ask the AFA |
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Send in a question and we will try to answer it in this column, or refer you to someone who can provide an answer. |
