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News Bytes:
What's Happening in the World of Franchising
EDITOR'S NOTE: News Bytes reports on topics of interest to everyone involved in franchising. Short items are invited for submission but cannot be acknowledged nor returned.
| The AAFD Announces Nominees for the 2008 |
The American Association of Franchisees and Dealers (AAFD) announced the nominees for the remainder of the 2008 Total Quality Franchising Awards. These awards recognize AAFD’s leading members and chapters; the award recipients will be revealed and presented at the Total Quality Franchising Awards Banquet on Monday, May 5, 2008, during AAFD’s 16th Annual Conference in Newport News, Virginia.
In announcing the AAFD’s Total Quality Franchising Award Nominees, AAFD Chairman Robert Purvin said, “This year’s nominees are truly a worthy group, a tremendous amount of hard work, and high ethical standards are evident in the efforts of each nominee for this years TQF awards.”
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| Proforma Owner, Susan Freiberg’s Donation to Help Local Red Cross Reach its Financial Goal |
TURNERSVILLE, N.J. – April 29, 2008 – Susan Freiberg, Owner of Proforma ABF Direct and Washington Township Rotary President, is helping Gloucester County Red Cross’s Executive Director Laura Steinmetz “bag” the local branch’s financial troubles. Freiberg, with the resources of Proforma ABF Direct at hand – a Turnersville company that sells promotional products and printing– is donating 500 beach tote bags to the Gloucester County Red Cross to sell for an affordable $10. After all the bags are sold, the local Red Cross branch will be $5,000 closer to its mandatory goal of raising $70,000 in order to stay open.
One of the oldest chapters in New Jersey, the Gloucester County Red Cross collects over 11,000 units of blood annually for use locally, and certifies over 8,000 local residents in CPR, first aid and AED use. Every year, the chapter delivers 200 important messages to deployed military personnel from Gloucester County, and is gearing up to support the National Guard from Woodbury, NJ which is leaving for Iraq in June.
After financial setbacks due to the 2004 tsunami and the string of hurricanes that followed in 2005, the Gloucester County Red Cross is in danger of closing its doors. Branch executives have been tirelessly seeking donations from the community and local businesses in order to continue its service to those in need. Freiberg, as Rotary president, saw this as an opportunity to significantly help a local organization that reaches so many in the community.
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| FTC Issues Updated Franchise Rule |
The Federal Trade Commission has approved amendments to the Franchise Rule, which was originally promulgated in 1978. The amended Rule has a phased-in effective date: as of July 1, 2007, franchisors may follow the amended Rule, or they may continue their current practice of complying with the original Rule or individual state franchise disclosure laws that require an Uniform Franchise Offering Circular (“UFOC”); but by July 1, 2008, they will be required to follow the amended Rule only.
The Franchise Rule gives prospective purchasers of franchises the material information they need in order to weigh the risks and benefits of such an investment. The Rule requires franchisors to provide all potential franchisees with a disclosure document containing 23 specific items of information about the offered franchise, its officers, and other franchisees. Required disclosure topics include, for example: the franchise’s litigation history, past and current franchisees and their contact information, any exclusive territory that comes with the franchise, assistance the franchisor provides franchisees, and the cost of purchasing and starting up a franchise. If a franchisor makes representations about the financial performance of the franchise, this topic also must be covered, as well as the material basis backing up those representations.
A primary goal in amending the Rule was to harmonize the federal Rule with state franchise disclosure laws. The Commission’s amendments also serve the purposes of updating the original rule to adapt to changes in the marketing of franchises and new technologies, reducing compliance costs where possible, and addressing complaints voiced by many franchisees during the amendment proceeding about the franchisees’ experience with franchisors after they have signed an agreement and entered into a franchise relationship.
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| LA BOXING Just Gets Bigger in New Jersey |
Santa Ana, CA/March 18, 2008 – Southern California-based LA BOXING Franchise Corporation continues its fast-growth pace with the signing of one franchise per week, taking the organization to 104 units in 19 states and Puerto Rico.
LA BOXING Franchise Corporation, a membership physical fitness company consisting of unique boxing, kickboxing and MMA training regimens, which utilize a system and products that are proprietary to LA Boxing, announced that it has signed an exclusive franchise agreement for expansion into the Cherry Hill, NJ, market, selecting LouAnn Evans, an experienced LA BOXING franchisee who owns a successful LA BOXING gym in Somers Point, NJ. Her two partners in the Cherry Hill franchise are T.J. Eaton and John Walsh.
Ms. Evans has 20 years of business experience including extensive experience in sales and marketing, strategic planning, and financial management. Simultaneously, she was also an adjunct professor in the Rowan University School of Business for several years. Ms. Evans has been a senior manager for over 6 years in the laboratory products (biotechnology) industry. She is currently employed as Director of Marketing by a worldwide laboratory products distributor, with responsibilities for 750 suppliers, and a staff of seven. Ms. Evans is the sole member of Bout Time, LLC dba LA Boxing, established January of 2006, having opened the LA Boxing Atlantic City, NJ franchise on December 1, 2006. Ms Evans has a BA in Marketing from the Richard Stockton College of New Jersey and an MBA from Rowan University. She is active in several organizations including the American Business Women's Association, Somers Point Business Association and the Atlantic City Chamber of Commerce.
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