Proposed “Universal Franchisee Bill of Rights”

The Coalition of Franchisee Associations, Inc. (the "Association") has recently proposed a "Universal Franchisee Bill of Rights" that, according to the association is been drafted and designed to cure franchise agreement "imbalance[s]...that favor the franchisor".  The proposal is an excellent effort and certainly something that prospective, current franchisees and franchisors should evaluate.

From a franchisee perspective I must again caution that you must take a proactive approach in evaluating and assessing a prospective franchise opportunity.  Too many times franchisees do not undertake the necessary due diligence prior to buying a franchise.  We will be reviewing this proposed bill of rights in more detail.  My initial concern is that from a legal standpoint implementation by franchisors may be risky when faced with a franchisee that does not act in good faith.  However, the point and goal of the Association is one of "balance between franchisor and franchisee".  I am not only a fan of balanced relationships but I also believe that "balance" makes for good business.

We will be reviewing this proposal in more detail.