Franchising can be a bigger risk than many expect.
This week’s episode of the Restaurant Business podcast "A Deeper Dive" delves into that risk with one of the country’s foremost experts on the topic of franchising: Bob Purvin, the CEO of the American Association of Franchisees and Dealers.
Purvin discusses the need for more franchise regulation and enforcement, and he discusses the problems that can arise when franchisors sell to inexperienced and undercapitalized franchisees. There have been a number of situations over the years in which franchises collapsed and left hundreds or even thousands of investors with nothing.
The AAFD is a nonprofit trade association that works to protect the rights of franchisees, including helping them to form associations. The association has also developed fair franchising standards and advocates for fair and balanced franchise agreements.