AFFD Adopts New Fair Franchising Standards

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San Diego--The American Association of Franchisees & Dealers has announced the adoption of three new Fair Franchising Standards. The new standards define exemplary practices in three distinct aspects of a franchising relationship:

1. The use of personal guarantees in a franchising transaction.

2. The rights of a franchisor to sell or transfer the entire franchise system.

3. The use of so-called "gag order" agreements to keep the settlement of disputes confidential.

The AAFD uses its standards to award franchisors with its Fair Franchising Seal. To earn the seal, the company's franchise agreement must be consistent with the Fair Franchising Standards and must receive approval from at least 75 percent of its franchisees in a confidential AAFD-administered survey. -American Association of Franchisees & Dealers

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