Ms. Chelsea Brossard
Chief of Staff
Honorable Josh Gottheimer, Congressman
March 3, 2023
Dear Chelsea Brossard,
I am pleased to learn that Congressman Gottheimer, along with Congressman Rodney Davis, is now instrumental, in a bipartisan nature, in creating the “Congressional Franchise Caucus.”
This effort has the full support of the International Franchise Association, which has long sought to “protect the franchise model” as one of its primary functions.
This caucus and its members must realize that the underbelly of franchising must be addressed. It is the darker side of a terrific way for Franchisee Investors to go into business with the support and resources they’ll need and pay for from their respective franchisors.
The need to understand:
In fully understanding some of the issues and undertakings of their Congressional and Senatorial Colleagues, It is suggested they read at least two pieces of proposed legislation by the Honorable Senator Cortez Masto of Nevada and the Honorable Congresswoman Jan Schakowsky of Illinois. Reference which is linked here:
A complete copy of the report by Senator Cortez Masto can be found here:
Congresswoman Schakowsky’s proposal can be found here:
Only the beginning and more:
In other pieces of legislation, generally opposed by the International Franchise Association and its lobbyists and President, Mr. Mathew Haller, volumes are spoken in the lack of fairness and “Total Quality Franchising”. It is the clear intent of the IFA’s desire to maintain the status quo rather than adopt the transformational changes sweeping the country. I’d be remiss if I didn’t say they are, however, a fine organization, provide exceptional services to the franchisor community, and as a non-profit the foundation does some very good work. Somewhere along the line, however, they’ve lost track of faltering Cherished Franchisees.
American Association of Franchisees and Dealers (AAFD.org)
As members of the American Association of Franchisees and Dealers, we advocate strongly for existing and “ex” Franchisees who have suffered under poorly operated franchises and their respective management. More concerning the AAFD and its affiliates can be found here:
https://www.aafd.org/aafd-addresses-non-compete-clauses-with-the-federal-trade-commission/
https://www.aafd.org/wp-content/uploads/2022/12/Joint-FTC-Letter-Final.pdf
American Association of Franchisees and Dealers
Franchisee Bill of Rights
The Franchisees of America, representing the best of the American entrepreneurial spirit, hereby recognize and demand a basic minimum of commercial dignity, equity and fairness. In recognition there of, the franchisees of America do proclaim this Franchisee Bill of Rights as the minimum requirements of a fair and equitable franchise system:
- The right to an equity in the franchised business, including the right to meaningful market protection.
- The right to engage in a trade or business, including a post-termination right to compete.
- The right to the franchisors loyalty, good faith and fair dealing, and due care in the performance of the franchisors duties, and a fiduciary relationship where one has been promised or created by conduct.
- The right to trademark protection.
- The right to full disclosure from the franchisor, including the right to earnings data available to the franchisor which is relevant to the franchisees decision to enter or remain in the franchise relationship.
- The right to initial and ongoing training and support.
- The right to competitive sourcing of inventory, product, service and supplies.
- The right to reasonable restraints upon the franchisors ability to require changes within the franchise system.
- The right to marketing assistance.
- The right to associate with other franchisees.
- The right to representation and access to the franchisor.
- The right to local dispute resolution and protection under the laws and the courts of the franchisee’s jurisdiction.
- A reasonable right to renew the franchise.
- The reciprocal right to terminate the franchise agreement for reasonable and just cause, and the right not to face termination, unless for cause.
The American Association of Franchisees and Dealers House of Delegates adopted and promulgated the Franchisee Bill of Rights on June 6, 1996, and works to promote awareness and acceptance of these rights among the franchising community and the general public.
A video concerning the AAFD is here:
https://www.youtube.com/watch?v=DXXzx9bYhnc
My desire to assist the caucus along with principals of the AAFD is to provide the caucus with information that would be enlightening and educational regarding the franchise space.
I thank you for reading as well as the desire that you’ll be passing this on to the Congressman for his increased understanding of the AAFD and our intent to consistently and fervently advocate for change, equality, inclusiveness, and transformation in franchising.
With sincerest and respectful regards,
Kim Perrotta
Legislative Franchisee Advocate
Certified SCORE Mentor
Certified Franchise Consultant CFC
Member, AAFD.org
ADA Diabetes Advocate
