History, Accomplishments, FAQs ...
|Who Are We?|
|The American Franchisee Association (AFA) is a national trade association of franchisees and dealers founded in February 1993. The AFA works to improve the industry of franchising while protecting its members’ economic investments in their businesses.
The AFA advocates for and provides testimony in favor of changing the rules and laws that govern franchising on both the state and federal level. In 1995 the AFA organized its franchisee and dealer membership nationwide, attaining the election of 137 delegates from 27 different chains to attend the White House Conference on Small Business in Washington, DC where franchisee legal issues were among the final 60 recommendations presented to the President and Congress for immediate action.
In 1996 franchisees from 30 different chains worked to develop the AFA’s Model Responsible Franchise Practices Act ("Model Act"). The purpose of the Model Act is to promote the growth of franchising through a uniform set of standards.
The following is a partial chronology of AFA's accomplishments and activities since 1993 on behalf of franchisees.
2) Litigation: First, the FTC now requires that franchisors disclose litigation involving predecessor corporations. Second, the FTC requires that franchisors disclose civil actions, other than ordinary routine litigation, that may impact upon the franchisor’s financial condition or ability to operate the business. Third, the FTC requires franchisors to disclose pending franchisor-initiated lawsuits against franchisees involving the franchise relationship. (In the past, the FTC Rule required franchisors to disclose only suits that franchisees have filed against the franchisor.)
3 Disclosure of Trademark-Specific Franchisee Associations: The FTC now requires franchisors disclose the existence of trademark-specific franchisee associations. Only those incorporated independent franchisee associations that make their existence known to the franchisor need be included. The burden to inform the franchisor of their existence on an annual basis falls on the franchisee association leadership.
of Integration Clauses: The FTC Rule no longer allows franchisors to
disclaim liability for, or cause franchisees to waive their reliance on,
statements made in the franchisors’ disclosure documents. The FTC recognized
that the use of integration clauses to disclaim liability for required
disclosures undermined the very purpose of the Rule, which is to prevent fraud
and abuse by ensuring that prospective franchisees have complete, truthful and material
information in order to make their investment decision.