Conception And Advantages Of American Franchisee Association.
American Franchisee Association (AFA) is an organization that represents franchisees and dealers that are operating in the United States. It was founded in 1993 with the purpose of improving the franchising industry and protecting the business interests of its individuals.
Ever since its conception, American Franchisee Association regulates the rules and regulations of the franchise industry at the state and federal level. The AFA has expanded its membership nationwide by currently having 137 delegates elected from 27 franchise sectors. However, the establishment of the Model Responsible Franchise Practices Act (Model Act) has enabled franchise businesses better growth potential. It has been the goal of AFA to set up standards for the franchising industry in the United States so as to regulate the standard practice of franchising.
History
Before the conception of American Franchisee Association in 1993, small franchise business were facing numerous problems that dealt with- - Growth Franchise businesses were finding it difficult to invest in the right economic conditions due to lack of regulation. - Regulation Businesses that had difficulty in franchising were generally characterized as having improper relation among different franchising sectors. Particularly small businesses found it difficult to find adequate climate for investment. - Licensing Since franchising involves the licensing of trademarks in exchange for recurring payment, there were many franchise outlets in the industry that did not have a proper license to franchise. This lack of licensing raised various issues on trade and investments. With these characteristic grievances of the franchising world, the U.S. House of Representatives Committee on Small Businesses held a meeting to listen to the problems that small business franchises were facing. Representatives of the franchising world and the political leadership came up with the solution of setting up a franchise trade association of franchises and dealers. With a trade association, the franchising world in the U.S. had efficient franchise regulations through which they could set better investment climate for the franchising world. Within a year more than 5,000 outlets became members of American Franchisee Association. Goals of AFA The elementary goal of the AFA is to protect the business interests of the franchising outlets so as to enable them to secure better growth potential. However its long-term goals also include- - Advocating the franchisee position - Inter-government regulations of franchise activities so as to enable legal protection for franchising business outlets. - Creation of an investor-friendly environment where franchisers are able to look for better opportunities of investing in franchise outlets. Members of the AFA Some of the members of American Franchisee Association include the following- - Asian American Hotel Owners Association (AAHOA), - Dunkin Donut International Franchise Organization (DDIFO), - Dominos Franchisee Association (DFA), - Association of Kentucky Fried Chicken Franchisees (AKFCF), - Popeyes Independent Franchisee Association (PIFA) These are just some of the members belonging to AFA out of many thousands. Since its conception in 1993 American Franchisee Association has continued to be a crucial representative for the demands of the franchising world. Many franchises in the U.S. are now able to set standards for their business and gain better growth potential.
Franchise Association
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