Press Releases

FOR IMMEDIATE RELEASE - July, 7, 2000

AAFD Adopts Final Criteria for Franchisor Accreditation

San Diego, CA. The American Association of Franchisees & Dealers (AAFD) announced that its Board of Directors has approved final criteria for awarding the AAFD's Fair Franchising Seal, and its new Total Quality Franchising Platinum Awardsm (TQF Platinum).

The two awards recognize superior franchising practices and promise to provide prospective franchise investors with valuable reference points in choosing a franchise investment. The Association intends to announce the first class of award recipients later this year.

There are over 2500 companies offering franchise opportunities in the US alone, and the AAFD has worked since its inception in 1992 to develop and promote uniform standards and criteria to help prospective franchise buyers to evaluate franchisors and their agreements.

New York attorney, Richard Rosen, Chair of the AAFD Standards Committee, expressed confidence that the two awards will spark a new era of investor confidence in franchise opportunities. "The era of accreditation of franchise opportunities represents a significant advance in the methods by which investors will be able to identify quality franchise programs," said Rosen. "The AAFD Awards establish high standards of quality, service and satisfaction within a balanced environment of equity, fairness and cooperative management."

The AAFD now has two levels of accreditation. The Fair Franchising Seal remains available to franchising companies that recognize and work with independent franchisee associations, have developed fair and balanced agreements, and have achieved a high degree of franchisee satisfaction. The TQF Platinum Award recognizes Seal recipients whose franchise agreements and practices substantially conform to the AAFD's Fair Franchising Standards. All recipients must achieve a 75% satisfaction rating from their franchise owners in addition to meeting other criteria.

In a separate announcement, AAFD Chairman, Robert Purvin reported that the Association is developing a ranking system for franchisors that is expected to be released at the beginning of the year. The new ranking system will provide a five star grading of franchise systems, intended to give franchise purchasers valuable information in making investment decisions. "We intend to grade franchisors on 10 important criteria of vital interest to investors, including profitability, market protection, product sourcing, negotiated agreements and franchisee relations, among others," stated Purvin. "This is the first ever non-commercial ranking of franchise opportunities, based upon the evaluations of those who buy franchises rather than those who sell them."

The American Association of Franchisees and Dealers is the oldest and largest direct member non-profit trade association representing the interests of franchisees and independent dealer networks throughout the United States. Stressing market solutions and franchisee empowerment through independent franchisee associations, the AAFD has grown to represent more than 12,000 franchised businesses nationwide.

For more information, contact the AAFD at 800-733-9858, or visit our website.