Independent franchisee associations are leading the charge for more fairness in the fast-food industry
Business Week reported about
troubled franchise owners and how franchisees are forming associations to give franchisees a voice.
Bhupinder "Bob" Baber, who owned a California Quiznos restaurant, believed Quiznos abandoned him after the sale. He took them to court over the allegations. He later formed Subs Franchise Association, an advocacy group and support network for troubled Quiznos franchisees.
The lawsuit went nowhere but Quiznos terminated his franchise contract for misusing its corporate name in his association. After a long and expensive battle, Baber killed himself on November 27, 2006. He left a suicide note talking about his struggle to fight injustices he saw with the franchise.
Other law suits against Quiznos alleged that the franchise used force to buy food at inflated proces and weren't open about the facts. Quiznos is on the franchise advisory council. They are an official body of elected franchisee representatives that gives input on how the franchise operates. However, the franchisor has no obligation to act on it.
There are also Independent franchisee associations, that give franchise owners handle such problems and offer support. According to the article, there are associations for A&W, Pizza Hut, KFC, Denny's, Sonic, Little Caesar's, Domino's, 7-Eleven, Burger King, Hooters, McDonald's, Hardee's, TCBY, Quiznos, Subway, and Dairy Queen.
Franchises can be great investments, as our news story about a
Dream Dinners franchise sold in California illustrates. However, it is buyer beware. There is little more than signed contracts to protect buyers. Legislation introduced to protect franchise owners has not passed. There are many business brokers who specialize in certain franchise chains.
Again, like any franchise purchase, know what you are signing up for. Check to see the lawsuit history of the franchisee. Get references and talk to other franchisee owners. If there is one, consult with an association associated with the franchise. As this tragedy illustrates there can be a lot at stake if you don't.
Comments:
