Meineke News

Recently a Bluemaumau guest asked the following question:

Mr. Purvin: How many have you "reviewed and graded as conforming to the AAFD Standards"? This is the top 5 of a list containing how many, total?

This is an excellent question, and bears response.

In total, the AAFD has graded about 60 franchise agreements, usually at the request of a franchisee association, but sometimes at the request of a franchisor that is considering trying to earn AAFD Accreditation. Only 18 brands have scored better than 80% against the AAFD Standards, and only 5 brands have scored above 90% compliant with the AAFD Standards.

Most agreements we grade receive a D or F Grade (below 60% conforming to our standards).

To earn AAFD Accredited Contract Status, an agreement must 'substantially conform' to the AAFD Fair Franchising Standards, and we at set that bar at 95% conforming. Expetec, Settle Inns and Cuppy's all scored about 99%. Meineke is the highest scoring mature brand, with a score of about 97%. The hotel brands that have earned the AAFD Fair Franchising Seal scored in the 80's.

The highest graded contracts have all been negotiated, and though not impossible, it would be hard to imagine an agreement scoring high that has not been a product of collective bargaining.

Having an AAFD approved contract is an important, but NOT the only important consideration in purchasing a franchise.

However, AAFD approved contracts deliver all of the rights that franchisee advocates have sought for years -- rights that have not been delivered through legislation or litigation, but are being achieved through negotiation.

After determining that the business model and brand are sound, Prospective Franchisees should adopt the mantra "I'll only invest if your agreement is AAFD Accredited." Existing franchisees should spread this advice -- only then will the marketplace demand fair and balanced franchise agreement at protect franchisees when things go South.

There are a lot of Cuppy's franchisees who were able to secure refunds because of the AAFD Accredited contract that they signed, and several commentators on Bluemaumau who consistently forget (or ignore) this important fact!