Association News

In furtherance of our mission to foster a cooperative and harmonious relationship with The Filta Group Inc. ("Filta") to facilitate discussions, the Association initiated communications with Filta to address key concerns that are universally relevant to all Filta franchisees. Specifically, we sought an open dialogue with Filta about the ongoing challenges with the collections process for National Account Contracts ("NAC") and Centralized Accounts, the premature collection of royalties for accrued but uncollected revenues, and the excessive filter quotas that result in wasted resources. Each of these issues accounts for lost revenues or unnecessary expenses that hinder growth not just for the franchisees, but also for the Filta brand as a whole.

Our sole focus as an Association is to give a voice to each franchisee, regardless of size or location, so that we can collaboratively address the challenges that impede your ability to realize your potential. We strive to achieve this not just through transparent and positive discourse with Filta, but also with each other. We view ourselves as a part of a team with a common purpose, and each of us is a resource with a wealth of experiences and knowledge waiting to be tapped. We are fully committed to better understanding every obstacle that every one of the franchisees must overcome through collective discourse. Becoming a member of the Association is a declaration of your commitment to this synergistic process for both Filta and its franchisees to do the right thing and substantially grow a trusted brand.

Click here to request more info about the Association and the process of joining.

On July 12, 2024, The Federal Trade Commission staff announced a reopening of the Request for Information on Franchise Agreements and Business Practices comment period until October 10, 2024. Comments may be submitted on regulations.gov by clicking on the “Browse Documents” tab and then clicking the “Comment” button. Your comment – including your name and your state – will be placed on the public record, including, to the extent practicable, on the regulations.gov website. You may view submitted comments at regulations.gov at any time.

Click here to send your comment now.

In a significant development this July, Filta franchisees across the nation are coming together with Commercial Kitchen Partners (CKP), marking a significant milestone for their collective growth. This exciting move sees owners who generated over 35% of Filta’s 2023 network revenue already joined CKP. Additionally, those responsible for another 19% of the network’s revenue have shown interest, requested information about CKP, or are currently in the process of joining.

This partnership aims to strengthen the relationship between Filta franchisees and The Filta Group Inc. by leveraging CKP’s expertise in providing comprehensive support and innovative solutions. As more franchisees align with CKP, the enhanced collaboration and shared resources are expected to drive improvements in operational efficiency, profitability, and market presence, benefiting both the franchisees and the Filta brand as a whole.

The North American Association of Subway Franchisees (NAASF) has hired attorney Robert Zarco and his firm, Zarco Einhorn Salkowski, who are also the legal team for Commercial Kitchen Partners, as general counsel to address systematic issues with Subway’s franchisor, including mandatory food discounting and pressured store remodels. These demands, according to Zarco, threaten franchisees’ profitability and autonomy. NAASF aims to initiate a constructive dialogue with Subway, although all options, including potential litigation, remain on the table. This move represents a more assertive stance by NAASF as Subway continues to implement systemwide changes and seeks to reverse declining unit volumes and profitability. Despite challenges, Subway remains a major global franchise, with positive same-store sales growth in recent years. Read More  

The U.S. Federal Trade Commission (FTC) has issued a stern warning to franchisors about engaging in unfair and deceptive practices that harm franchisees. The FTC highlighted issues such as undisclosed fees for services like technology and property improvements, which are not included in franchise contracts, and the use of non-disparagement clauses to prevent franchisees from reporting these unfair practices to regulators. The commission’s actions aim to protect franchisees and ensure transparency, as the number of complaints from franchisees has significantly increased. The FTC’s policy statement and new guidelines were issued to prevent franchisors from imposing unexpected costs and to encourage franchisees to report potential violations without fear of retaliation. For more information, visit  Yahoo.com  

Franchisee associations can help level the playing field between franchisees and franchisors by providing a unified voice that franchisors cannot easily ignore. These associations allow franchisees to share costs for legal and supportive services, facilitate communication of shared experiences and issues, and present well-supported positions to franchisors. They also offer training and mentoring, fostering a collaborative environment that enhances the overall franchise system. The American Association of Franchisees & Dealers (AAFD) supports the formation of these associations to promote fairness and collaboration in franchising. For more information, visit  AAFD