The Franchise Industry Is Getting Along Fine
The article "Franchise fracas" (Industries, Mar. 22) creates two impressions that we believe are incorrect and which do a grave disservice to thousands of hard-working, successful franchisees and franchisors.
The first is that franchisees and franchisors are "in battle" with each other. In fact, a Gallup survey, commissioned by IFA, reported that 94% of franchise owners nationwide consider their operation to be successful. The Gallup survey reports that 79% rate their working relationship with their franchisors as good or excellent while only 6% rate it as poor.
Secondly, your article uses one example of a franchisee who was not satisfied with IFA's handling of an initial complaint against the parent franchisor to conclude that "the industry can't police itself." With few exceptions, most complaints handled by IFA have resulted in an amicable settlement between the franchisees and franchisors.
Your article suggests that minimum federal standards "could help ease the tension inherent in the industry." IFA believes that where problems do exist, franchisees and franchisors are in the best position to work out their differences--without the heavy hand of government regulations.
William B. Cherkasky
International Franchise Assn.
Your story is a clarion call to franchisors, franchisees, and legislators alike: Don't ruin a good thing.
The franchising concept works because it is a common-sense partnering of hands-on local business supported by larger systems. From my own 10 years as president of a franchise system with no litigation with its franchisees, I have come to learn that when we treat franchisees as full partners, not adversaries, the system prospers and our customers benefit.
Michael F. Adler
President and CEO
Moto Photo Inc.
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