AAFD's Four Goals of Service
In furthering our mission to help our members achieve Total Quality FranchisingSM TQFSM), the Association has developed four principle goals of service.
Above all else, the heart and soul of the American Association of Franchisees and Dealers is helping franchisees develop greater market power, especially negotiating leverage, so that fair and equitable franchise relationships can develop over time.
The founders of the AAFD strongly believe the American free market works over time. Our free market economic system is based on the premise that "a willing buyer and a willing seller, each with equal bargaining power, will come to fair and balanced business arrangements."
The American free market has not been succeeding in the franchising arena. Whenever a market gets out of balance, ultimately events will bring the market back into balance. The AAFD believes itself to be the very market correcting influence that can bring about a balance to the franchising community.
The concept of market support services is really quite simple. AAFD franchise members have immediate buying clout through the AAFD Purchasing Co-op and e-Commerce Marketplace. Members further build market power and bargaining leverage by organizing into effective and cohesive associations of franchisees, affiliated with the AAFD's Trademark Chapters. AAFD Trademark Chapters achieve negotiating leverage with their franchisors, their suppliers and ultimately their customers by developing vital marketing networks.
The AAFD provides market support services in many ways:
PUBLIC EDUCATION: The AAFD educates franchisees and the general public regarding critical issues and problems in franchising. The Association must serve to echo strong warnings and objections to inequities in the franchising community. By exposing problem areas in franchising, the franchising community will be forced to take note and respond.
FRANCHISEE BILL OF RIGHTS: The AAFD has declared a Franchisee Bill of Rights which identifies 15 important contractual protections every franchisee should demand of his/her franchise relationship. Prospective franchisees should use the Franchisee Bill of Rights as a negotiating list with prospective franchisors.
THE EIGHT THINGS TO LOOK FOR IN A FRANCHISE OPPORTUNITY: The AAFD has identified 8 important criteria for franchise selection. The AAFD cautions against buying any franchise unless all 8 criteria are met.
THE AAFD'S FAIR FRANCHISING STANDARDS: The AAFD's crowning achievement has been the development of our Fair Franchising Standards, the first ever comprehensive effort to develop guidelines for franchising practices which balance the legitimate interests of both franchisors and franchisees. The new standards serve as the basis for the AAFD's new franchisor accreditation program (see the AAFD's Fair Franchising Seal below).
TRADEMARK CHAPTERS: Most importantly, the Association has organized itself into Trademark Chapters. The AAFD's Trademark Chapters effectively serve as networks for every franchise system represented by the Association. Franchisees are encouraged to participate actively in a Trademark Chapters for the benefit of the franchisees of their particular system. The AAFD's Trademark Chapters fulfill the functions of a trademark specific franchisee association at a fraction of the cost of forming an autonomous organization. Trademark Chapters are fully supported by the AAFD and are represented on the Association's Franchisee Leadership Council (FLC).
FRANCHISEE LEADERSHIP COUNCIL (FLC): The AAFD has created a special Franchisee Leadership Council of all independent franchisee associations that have affiliated with the AAFD, and the presidents of each Trademark Chapter. The AAFD will not create a separate Trademark Chapter for any franchise system that has an independent franchisee association on the Franchisee Leadership Council. Rather, the FLC member trade association will serve all the functions of an AAFD Trademark Chapter. All franchisees of a FLC member association are granted affiliate membership in the AAFD. Affiliate members may upgrade their membership at substantial savings. Membership in the FLC is available to any independent franchisee trade association that either pays FLC annual dues or is a managed Trademark Chapter of the AAFD.
THE FAIR FRANCHISING SEAL: The AAFD has established a prestigious award for franchisors that recognize independent franchisee associations, are dedicated to Total Quality Franchising through their substantial compliance with the AAFD's Fair Franchising Standards, and have established a reputation for fairness with the franchisees of their system. Prospective franchise purchasers can now look to AAFD accredited franchise systems to identify franchisors with a track record of fair franchising practices.
MEMBER BUYING POWER AND THE AAFD PURCHASING CO-OP: The AAFD's exclusive Gold Circle SupplierSM and Supporting Membership programs help maximize the buying power of franchisees by negotiating substantial member discounts across a broad range of products and services. In 1998, the association formed its own Purchasing Co-op to facilitate our chapter developing their own supplier programs. In 2000, the AAFD introduced our e-Commerce Marketplace, which truly defines Purchasing Power.
TRADE ASSOCIATION MANAGEMENT SUPPORT SERVICES: The Association offers management support services to members of the AAFD Franchisee Leadership Council. Trade associations taking advantage of AAFD management services may, in effect, use the AAFD as its management and administrative support staff. The AAFD will provide organizational and management support, database management, facilitate communications, and assist in meeting planning.
THE FRANCHISEE LEGALINESM. THE FRANCHISEE LEGALINESM. The AAFD has established a network of experienced franchisee counsel throughout the United States to represent the interests of franchisees and prospective franchisees. Currently, the Franchisee LegaLineSM operates in more than 40 states, offering FREE initial consultations to AAFD members and valuable special member programs including initial franchise opportunity reviews, initial franchise dispute reviews and special member pricing.
AAFD legal support services go well beyond the tangible benefits to franchisees. The LegaLine Steering Committee, managed by LegaLine attorneys, has a mission of educating attorneys as well as the general public regarding the prominent issues in franchising. The Steering Committee is also charged with maintaining credentialing standards for LegaLine members and continuing to offer new and innovative services for the benefit of AAFD members.
The Association has also developed a Speakers & Experts Bureau to provide resources to franchisee counsel when the need for expert witnesses arise. A new Mediation and Arbitration Panel will help members take advantage of alternative dispute resolution methods.
THE FRANCHISEE FINANCIALINE & LENDER'S NETWORKsm: Modeled on the AAFD's successful LegaLine program, the Franchisee FinanciaLineSM provides a range of invaluable financial services, including bookkeeping, accounting, tax advice and lending services. Most FinanciaLineSM members offer AAFD Members a special Fiscal PhysicalSM to evaluate the member's fiscal health and develop a plan to boost cash flow and improve cash management. The AAFD Lenders Network of banks and Small Business Lending and Investment companies interested in doing business with AAFD members on a preferential basis.
As a national business trade association, the AAFD endeavors to provide the full array of general member benefits one would expect from a broadly based trade association. Some of the AAFD's current and planned member benefits are as follows:
- The Franchisee VoiceSM Newsletter: The Franchisee VoiceSM is currently a quarterly publication. The first issue was only eight pages and the publication has now expanded to twenty pages. The goal is to build The Franchisee VoiceSM to a monthly magazine format that keeps AAFD members abreast of the pressing issues in franchising, while providing an ever growing orientation to AAFD member benefits.
- AAFD Communication Central: The AAFD strives to facilitate communication and networking among members, and to serve as a clearing house of information of interest to franchisees. This website is the cornerstone of this effort. We now feature unlimited bulletin boards & live chat. Equally important, the AAFD has made an investment of thousands of dollars to develop a sophisticated franchisee database, LAN computer network, broadcast faxing and teleconference services, centralized mailing, and a host of other services which help us to communicate with our members, and for our members to communicate with one another.
For our franchisee trade groups and Trademark Chapters, the Association provides several mechanisms for the dissemination of information and by which our members are able to communicate and network.
- InfoLineSM, Meeting Call, Broadcast Fax Network, Centralized Mailing: The Association has developed many systems and facilities to dramatically improve the ability of franchisees to communicate, including our national 800 number, the Franchisee InfoLineSM, which provides franchisees a place to call when they have questions regarding their franchise businesses. The AAFD's state-of-the-art teleconferencing services, provided by Gold Circle SupplierSM Connex International, are available to all of our franchisee members at very competitive rates. The association provides broadcast fax services at special AAFD member rates. The AAFD's faxing capabilities make it possible for inexpensive, overnight communication with members throughout the United States. The Association has also developed a relationship with a mailing house to provide effective economical mailing services to members and chapters.
- The First Franchisee Association on the Internet: The AAFD is proud to be the first franchisee association to set up residence on the Internet with our own Homepage on the World Wide Web (http://www.aafd.org). In 1997, the AAFD dramatically expanded its Internet presence to become a central source for information about franchising, and a gateway to access hundreds of AAFD benefits and service providers. The AAFD is proud to have been honored as a Dow Jones Select Site and a top site by Smart Business Computing Magazine.
The AAFD continues to extend Communication Central to our members at the edge of telecommunication technology. The combination of our mailing, faxing, telecommunications, and Internet services, as well as The Franchisee InfoLineSM and The Franchisee VoiceSM creates a dynamic ability for the Association to communicate with its members. The AAFD's communication efforts are tied together by Telemagictm, a powerful database management software system that allow us to maintain close contact with AAFD members throughout the United States.
- PROFESSIONAL SERVICES PANELS: The AAFD has created several Professional Services Panels to provide quality services and products to AAFD members at special members only prices. In addition to the Franchisee LegaLineSM, FinanciaLineSM and the National Lender Network (described above), the association has also developed its exclusive Suppliers NetworkSM, which has dramatically expanded from its original concept of a network of franchising consultants to the AAFD's national network of product and service providers who offer discounts and members only pricing to AAFD members! The AAFD has also created a dispute resolution panel (of arbitrators and mediators), as well as a Speakers & Experts Bureau to provide a constant source of expertise to the franchising community.
- THE AAFD'S GOLD CIRCLE SUPPLIERSSM COUNCIL. Acting as a national buying cooperative for franchised businesses throughout the United States, the AAFD is negotiating many attractive member benefits including discounted credit and debit card processing, payroll and employment services, telecommunication services, business and health insurance packages and many other benefits. The AAFD has already developed an impressive list of Gold Circle SuppliersSM who have earned the AAFD's endorsement by offering special member pricing, by participating in the AAFD's rebate program to support our Trademark Chapters and Franchisee Leadership Council member associations. All Gold Circle SuppliersSM support AAFD programs and publications - like this Member Guide. AAFD Gold Circle SuppliersSM have earned our members' support, as well as our endorsement.
- TRADE ASSOCIATION MANAGEMENT SUPPORT SERVICES FOR FLC MEMBERS: The Association offers management support services to members of the AAFD Franchisee Leadership Council. Trade associations taking advantage of AAFD management services may, in effect, use the AAFD as its management and administrative support staff. The AAFD will provide organizational and management support, data base management, facilitate communications, and assist in meeting planning.
- EDUCATIONAL PROGRAMS: A major mission of the AAFD is to educate franchisees and the general public regarding the realities of the franchise industry. Through AAFD publications, seminars, and sponsored public appearances, AAFD sponsored educational programs will help enlighten the public regarding the realities and pitfalls of franchising, and teach existing franchisees how to prosper and improve their circumstances within the franchise industry.
The AAFD is designing educational seminars and programs of benefit both to franchisees, franchise attorneys, and other professionals serving the franchising industry. The Association has participated in numerous public forums and has contributed articles to numerous magazines and journals including Fortune Magazine, Franchise Times, Money Magazine, the Franchise Handbook, Entrepreneur Magazine, Black Enterprise, Working Woman, Glamour, the American Bar Association Forum On Franchising, and the ABA Franchise Law Journal, among others.
- NATIONAL INFORMATION CLEARING HOUSE: The AAFD functions as an unofficial clearing house of a constant flow of information regarding the franchise industry. As the Association grows, so will its capacity to accumulate and assimilate data of valuable import to our franchisee members. Presently, there is not a single source of unbiased information available to franchisees. The AAFD is designing its internal database capabilities to serve as a repository of important information relative to issues of importance in franchising. For example, the AAFD encourages Franchisee LegaLineSM members to advise the Association of franchise systems involved in litigation so the AAFD may refer franchisees of a specific system to counsel already knowledgeable with the specifics of particular franchise systems. Additionally, the AAFD intends to act as a clearing house for good and fair franchising business practices. In this way, the AAFD will provide a valuable service to its members, the public, and the franchising industy.
- ANNUAL MEETING: Pursuant to the Association's Declaration of Trust, the AAFD holds its general membership meeting each year. The AAFD annual meetings are an opportunity to bring together the general membership, to elect the Board of Directors, and to hold various advisory councils, as well as annual meetings for the Association's Trademark Chapters and Franchisee Leadership Council.
A highlight of the annual meeting is the AAFD sponsored Market Power Trade Show. Exhibitors are limited to accredited franchisors, Gold Circle SuppliersSM, and members of The Franchisee LegaLineSM, FinanciaLineSM, and CounseLineSM, as well as other supporting members of the Association. AAFD annual meetings also feature noted speakers of interest to franchisees and are held in suitable convention cities giving AAFD members an optimum opportunity to network with one another and to advance the cause of franchising from the perspective of franchisees.
- TOWN HALL MEETINGS: The AAFD conducts franchisee town hall meetings throughout the United States to educate franchisees and to develop grass roots support for the cause of franchisee rights and fairness in franchising.
- AAFD PUBLICATIONS: The AAFD sponsored the authoritative book on franchise fraud and abuse, The Franchise Fraud: How to Protect Yourself Before and After You Invest, authored by AAFD Board Chairman Robert L. Purvin, Jr., and published by John Wiley & Sons in 1994. The Association published the AAFD's Road Map to Selecting a Franchise and will soon introduce the AAFD Guide to Franchise Selection being jointly produced and published with the Association of Small Business Development Centers and Upstart Publishing Company. Additionally, the Association seeks out quality publications for our members which are offered at special member pricing. The Association has developed the AAFD Resource Storetm which carries selected titles that are available at discounted member prices.
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