The American Association of Franchisees and Dealers (AAFD) announced a new program for new and emerging franchise systems to earn AAFD Accredited Contract status. The new initiative provides accreditation to franchise systems that do not have an established track record of great franchise relationships, but whose franchise agreements substantially conform to AAFD’s Fair Franchising Standards. This new program provides a great tool for prospective franchisees to identify franchise opportunities that respect the rights of franchise owners.
Upon request by a franchisor, the AAFD will conduct a review of the franchise agreement and identify areas in which the franchise agreement needs to be amended to conform to AAFD’s rigid Fair Franchising Standards. Franchise agreements that conform earn AAFD Accredited Contract Certification.
Prospective franchise buyers now have objective criteria by which to judge the fairness of a franchise agreement. This is a strong asset in setting a franchise apart from the many that a prospect is likely to be considering.
In addition, Franchisors with AAFD Accredited franchise agreements have the opportunity to promote the fact that their franchise agreements comply with AAFD’s Fair Franchising Standards.
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