List of Franchise Associations

If you’ve read up on franchise agreements, you know that they can be very biased in favor of the franchised company. As the franchisee, you may well ask, “Who’s on my side? Who looks out for me?”

Franchisees do have some risks. They are betting everything on a company and trusting them to prosper and treat the franchisee fairly. But, as in any business endeavor, there are con artists, scams, unethical companies, embezzlers, and all kinds of characters who prey on franchisees. There are also businesses which are just plain poorly managed. Companies do go down, after all; you can see their stories in the paper every day, and quite a few of them just fail out of plain, old-fashioned stupidity.

Since franchisees are exposed to so many natural hazards, there are a number of organizations which have formed to look after the interests of franchisees. Think of them as “unions” of a sort, or special interest groups. Some of the larger groups:

* American Association of Franchisees & Dealers (AAFD) - Based in the United States, this is a non-profit trade association which defines and promotes fair franchising practices. They use “both carrot and stick” methods, awarding companies for good performance and offering attorney referrals to franchisees. You can also request a detailed report on a company from whom you are considering buying a franchise, join a committee on standards, and attend workshops and meetings to find out what your rights are.

* American Franchise Association (AFA) - This is a smaller, but no-nonsense, group which acts as a franchisee advocate and a watchdog for franchisee practices. They’re chock-full of meaty information on the hazards of franchising and how to protect yourself. You can request one-on-one consultation, get a business review, and get legal assistance in the form of attorney referrals and advice.

* International Franchise Association (IFA) - A world-wide group, they claim to be the ?Spokesperson for Responsible Franchising?. Services include legislative, educational and networking benefits. They are more of a political action group - they influence the various countries and governments to keep their laws and regulations “franchise friendly” and set themselves up as a kind of global network for all franchising companies. So they’re kind of on both sides of the fence, although, should you be in a situation like a company that’s 100% franchisee-owned, that will make little difference to you.

* Women’s Franchise Committee (WFC) - Yes, a special chapter just for the women of franchising. Their goal is to “promote women’s participation in franchising by providing international networking opportunities for the exchange of ideas, resources, and experiences”. They offer conferences and advice, and have local chapters in most major cities in the United States.

This is just the beginning, there’s many more organizations like this around the world. Any one of the above should be able to refer you to all of the others. In addition, many companies have an organization amongst its own franchisees, which also functions as a kind of union. Some companies want to give more power (and more responsibility) to the franchisees, while other companies act like a king presiding over a fiefdom. So it is necessary for franchisees to work together towards the common goal of ensuring that they have a level playing field and fair treatment.

There, now, isn’t that a relief?