Freedom of Association
A franchisee may freely associate with other franchisees or associations.
Good Faith and Fair Dealing
A franchisee may rely on a franchisor's good faith, fairness, exercise of due care, and performance including the administration of advertising, rewards programs, marketing funds, and franchise or development agreements.
Uniform Application of Brand Standards
Franchisors shall maintain consistent operating standards under a specific franchise system brand name and uniformly apply such standards in a non-discriminatory manner.
Full Disclosure Regarding Fees Collected From Franchisees
A franchisor shall make available to the franchisee all records of marketing, rewards programs, and related fees that have been paid by franchisees, vendors, suppliers, and licensees.
Right to Price
A franchisee may establish the price of goods and services it sells.
Fair Sourcing of Goods and Services
A franchisee, or franchisee purchasing cooperative, may purchase from any vendor, goods and services that meet the formally established standards of the franchisor.
Right to Renew the Franchise
A franchisee may renew its franchise under terms free of unreasonable costs and or stipulations.
Right to Transfer
A franchisee shall have a right to transfer its franchise to a qualified purchaser, including, but not limited to, family members or business partners, without unreasonable costs, stipulations or penalties.
Encroachment
A franchisee shall have specific market protection wherein the franchisor shall not materially impact the franchisee's business, or allow another entity with the same or a similar brand to operate.
Ample Notice of Significant Change; Franchisee Termination Rights
Notice of significant change to the franchise system shall be given in a reasonable time prior to required changes. A franchisee may terminate without penalty, or liquidated damages, if a change to the franchise system would cause substantial negative impact or if the franchisee is experiencing substantial financial hardship. Under such termination any noncompetition covenant shall be void.
Default; Franchise Termination Rights
Prior to franchise agreement termination, the franchisee shall be given detailed reasons for alleged default and reasonable time to cure. Termination shall not occur without good cause, and termination shall not compel payments of liquidated damages, and or early termination fees. All franchise agreement rights shall remain in full effect for any franchisee not in default or that cured a default. A default under one franchise agreement shall not constitute a default under a different franchise agreement.
Fairness in Dispute Resolution
A franchisee may elect to have all dispute resolution proceedings and legal action occur in the local venue of the franchisee and shall not be required to submit to mandatory binding arbitration.
Why Franchisees Need a Bill of Rights!
Click image to enlarge (pdf)
Over the last 50 years franchisees have invested their capital and hard work in creating some of the most recognized brands in the marketplace. The success of franchising is predicated on the investment by franchisees. This is now at risk because the terms of the franchise agreements have become more one-sided in favor of the franchisors. They have significantly reduced the ability of franchisees to build their businesses and serve their customers.
This Universal Franchisee Bill of Rights is a fairness doctrine. It has been developed by franchisees in multiple systems and industries to identify the basic terms of fairness that are missing in their franchise agreements, and must be restored to ensure the success and growth of the franchise systems.
Franchisee Associations That Have Ratified the Universal Franchisee Bill of Rights:
- Asian American Hotel Owners Association
- Buffalo Wings National Franchisee Association
- Coalition of Franchisee Associations
- Domino's Franchisee Association
- Dunkin' Donuts Independent Franchise Owners
- Econo Lodge Franchisee Association
- Edible Arrangements Independent Franchisee Association
- Independent Hardees Franchisee Association
- Independent Organization of Little Caesars Franchisees
- Long John Silver's Franchisee Association
- Meineke Dealers Association
- National Franchisee Association (Burger King)
- North American Association of Subway Franchisees
- Owners 8 Association
- San Francisco - Monterey Bays 7-Eleven Franchise Owners Association
- Service Station Franchisee Association
1230 Endorsements & Ratifications
1214 Endorsements
- 474 Public Endorsements
- 740 Private Endorsements
16 Ratifications
- Franchise Review report released: good faith and penalties recommended
- IslandTime Treasures Named 2013 Military Friendly Franchise
- Should I Franchise My Business?
- Sport Clips Haircuts Makes 20th Anniversary Huddle an “Extraordinary Experience”
- Value Place Announces Construction of New Extended-Stay Property in Lake Charles, LA
