Franchise owners band together in tough economic environment

| Oct 28, 2020 | Blog, Franchise Law |

New franchise associations are being formed in Florida and across the nation. The formation of these associations is in response to the increasing desire for franchise owners to enjoy more bargaining power and more control of their business.

The need for franchise associations

Franchise law professionals explain that many franchise owners prepared for the worst in response to a recent downturn in the economy. One franchise association chairman says that his association anticipated a decrease in membership after watching many business owners close their doors. Instead, franchise owners realized the extent of the crisis and determined they should face these obstacles as a united front.

Problems for franchise owners

Franchise owners are speaking out about what they see as a lopsided franchise agreement. These owners say that the majority of power contained within the franchise agreement is in the hands of franchisors. This fact is not new to franchise owners, and most of them have no problem working within the current system when things work out for everyone involved. However, the current economic crisis has helped reveal why business as usual is sometimes not sustainable for franchisees.

Members of franchise organizations want franchisors to know that their membership is not due to an intent to become antagonistic to them. The organizations state that they intend to foster passion and a belief among franchisees that the success of the franchisor brand represents an asset to them.

A secretary with the Independent Association of Saladworks Franchisees points out that franchise associations work without pay. She says the motivation for franchisees is to become more of a benefit to the franchise system.

Franchisees involved in a dispute with their franchisor face a potential legal battle filled with complex legal concepts. An attorney experienced with franchise law may represent business owners who find themselves in this position.

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