AAHOA SURVEY FINDS ONLY 5 PERCENT OF FRANCHISEES ARE HAPPY WITH THEIR AGREEMENTS

THE AMERICAN FRANCHISE business model is in trouble, according to a recent survey commissioned by AAHOA. The survey was inspired by a webinar AAHOA co-sponsored
to gather public comment on the state of franchising for the Federal Trade Commission.

The survey found that only 5 percent of the franchisee respondents are satisfied that their current franchise agreements provide fair terms representing a balanced
relationship between themselves and their franchiser. Also, 72.6 percent of respondents would “possibly” or “probably” terminate their current franchised business
within the next year if they could do so without penalty.

“Franchising is in dire straits unless changes are made,” said Laura Lee Blake, AAHOA president and CEO. “Franchising is still a powerful tool for economic mobility
for America’s small-business owners, including AAHOA Members. But franchising only works when both franchisors and franchisees are committed to its success, which
requires transparency, fairness, and sustainable business practices. As this survey shows, there is much room for improvement when it comes to relationships that
allow our small-business owners to thrive.”

Blake recently wrote an editorial supporting AAHOA’s 12 Points of Fair Franchising and its promotion of a proposed New Jersey law that would reform that state’s
franchising regulations in ways similar to the 12 points. Several large hotel companies, including Choice Hotels International and Marriott International, protested
AAHOA’s recent annual convention in protest to its position on franchise reform

The survey was conducted among owners of hotels, restaurants, retail stores and other small businesses that had participated in the FTC webinar. It was co-sponsored
by the American Association of Franchisees and Dealers, and the Coalition of Franchisee Associations, conducted the survey after a recent webinar with FTC Chair
Lina Khan. The FTC is soliciting comments through June 8 about issues that affect franc