AAFD franchise lawsuit

After years of struggling and battling their own franchisor for support and actions, over half of the franchisees formed an association with the American Association of Franchisees and Dealers (“AAFD”) [www.aafd.org] and took action. At first the action was several letters trying to get their franchisor to work with them to improve the franchise system and provide them with key services, updates, and information. Despite their numerous attempts, the franchisor decided to ignore them and instead would send out group emails to the franchisees trying to pacify the claims of the association and even went as far as creating its own association within the franchise – yet another attempt to control and pacify. Unfortunately, due to the franchisor’s actions (and inactions) the AAFD The Tutoring Center Franchisee Association choose to take action themselves and filed this lawsuit. The franchisor’s response – ANOTHER email to the franchise system attempting to disarm and pacify the system. This is just another example of why it is so important that the franchisees to ban together to stand up for their rights. It is also another prime example of why the government should better regulate the franchise industry (or at a very minimum ban arbitration clauses and give us private cause of action for violating the FTC Amended Franchise Rule).