IFA Launches Historic Initiative to Enhance Franchise Relations

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FOR IMMEDIATE RELEASE


Contact:

Matthew Haller, 202-662-0770

Jenna Weisbord, 202-662-0766

mhaller@franchise.org

jweisbord@franchise.org


IFA LAUNCHES HISTORIC INITIATIVE TO ENHANCE FRANCHISE RELATIONS


WASHINGTON, Sept. 30, 2013—The International Franchise Association Board of Directors recently adopted recommendations by the IFA Franchise Relations Best Practices Task Force to develop ways to strengthen franchise relations.


The Task force, comprised of franchisees and franchisors, was formed in September 2012 by IFA President & CEO Steve Caldeira under the direction and guidance of then IFA Chairman, Jon Luther. The Task force worked within two working groups, a Franchisee Working Group and a Franchisor Working Group, then together developed and agreed to seven recommendations, which were adopted by the IFA Board of Directors. Ken Walker, former IFA chairman and former CEO of Driven Brands, Inc. is chair of the Franchisor Working Group, along with Joe Bourdow, senior advisor at Valpak as Vice-chair. The Franchisee Working Group is chaired by Aziz Hashim, (Popeyes®, Checkers/Rally’s Drive-In Restaurants, Inc® and PetValu) and Saunda Kitchen, IFA Franchisee Forum Chair and Mr. Rooter franchisee, serves as Vice-chair.


“These seven recommendations, including a newly-developed Statement of Guiding Principles and Summary of Franchise Offering Information, are historic in our industry, and are intended to provide better information to current and prospective franchisees,” said Hashim.


“The cornerstone of a healthy and thriving franchise industry is strong franchise relations,” said Walker. “Once implemented, these recommendations will greatly enhance franchise systems success, for franchisors and franchisees.”


The seven recommendations are:


  1. Better Education of Prospective Franchisees and Ways to Improve Franchise Disclosure

    The Task force determined that better understanding and clarity is needed about key terms in franchise agreements at the outset of the relationship between franchisor and franchisee. A subcommittee is developing a new online course, due later this year, to better educate prospective franchisees about the Franchise Disclosure Document (FDD) and terms in franchise agreements.

  2. More Education on Franchise Relations

    IFA will expand and increase its education programs and offerings, with more focus on franchise relations at its meetings, including the IFA Annual Convention, Legal Symposium and within Certified Franchise Executive (CFE) Programs.

  3.  IFA Code of Ethics, Brand Stewardship, and Alternative Dispute Resolution (ADR)

    IFA is expanding its dispute resolution services and is committed to making these programs more readily available to IFA members. IFA has also re-vamped the existing Ombudsman site, www.ifaresolve.com , to improve resources and increase awareness of services.

  4. Governance

    The IFA will increase efforts to recruit franchisee leaders to the IFA Franchisee Forum and to the IFA Board of Directors. Two franchisees, Saunda Kitchen (Mr. Rooter Plumbing) and Guillermo Perales, (Popeyes®, Golden Corral Buffet & Grills, Cici’s, Burger King, and Arby’s) were elected to the IFA Board on Sept. 16, 2013, bringing the total to eight, including Aziz Hashim, who will become Chairman in 2016.

  5. Communications

    IFA staff, Franchisee Forum members, as well as other committees are working to ensure that all IFA communications reflect the collective voice of franchisees and franchisors.

  6. Research

    IFA engaged Public Opinion Strategies to conduct research and focus groups with different segments of the franchising industry, including both members and non-members, to get their views and concerns about franchise relations-type issues. This research is being used to improve communications with members and external audiences, such as the media and policymakers.

  7. Clarifying Terms in Franchise Agreements

    The Board adopted a “Statement of Guiding Principles” and a “Summary of Franchise Offering Information/Profile” to provide more clarity and transparency regarding the terms in franchise agreements and the Franchise Disclosure Document (FDD). The “Statement of Guiding Principles” was approved at the IFA Board of Directors meeting in September. IFA is formatting the “Summary of Franchise Offering Information” on the IFA website, www.franchise.org Caldeira said that the IFA is implementing a comprehensive and integrated communications plan to inform members about the recommendations and new tools that are available throughout the year.


Along with the chairs and vice chairs of the working groups, the Task force members are:


Franchisee Task force members: David Barr,(KFC, Taco Bell, TGI Friday’s, McAllisters), Doc Cohen (Great American Cookie, IFA Past Chair), Mitch Cohen (Dunkin’ Donuts/Baskin-Robbins), Jack Earle (McDonalds, IFA Past Chair), Sean Falk (Great American Cookies, Mrs. Fields Cookies, Pretzel Maker, Salsarita’s Fresh Cantina), Mariana Huberman (The UPS Store), Tim Lightner (TWO MEN AND A TRUCK), Barry Miller (Sylvan Learning Centers) and Jeffrey Tews (BrightStar).


Franchisor Task force members: Jim Amos, (Tasti D-Lite, IFA Past Chair ), Melanie Bergeron (TWO MEN AND A TRUCK), Liam Brown (Marriott International), Don Burleson (Jani-King) Michael Isakson (IFA Past Chair), John Kujawa (McDonalds), Michael Seid (CFW Shops), Catherine Monson (FASTSIGNS), and Barbara Moran-Goodrich (Moran Industries).


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About the International Franchise Association

The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.


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