For a number of years there have been various discussions regarding a lack of balance between the rights of franchisors and franchisees. The basic premise is that franchise agreements have continued to evolve over the past 25 years whereby franchisors have gained a distinct advantage. Advocates for franchisee rights claim that the reasons why a franchise agreement be weighed in favor of the franchisor, including the fact that the franchise network must be protected, has gone too far in favor of franchisors.
In a recent BMM article it was reported that the Coalition of Franchisee Associations, established 3 years ago, has drafted a bill of rights.The CFA already represents store owners in such giant chains as Subway, Burger King, Hardee's, Meineke Car Care, Supercuts, Dunkin' Donuts and others. Last year the Little Caesars franchisee association joined. This year the giant Asian American Hotel Owners Association signed on.
It remains to be seen how far this effort will advance, however, given the size and composition of the CFA membership it will be interesting to watch.
Franchisee Associations Looking to Strike a Balance
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