An independent franchise association is formed, operated and perpetuated by individual franchisees. While franchisors have formed many associations, only a few have been formed by franchisees. Organizations that have the moniker “advisory counsel” or “advisory board” are generally franchisor organizations whose members are appointed by franchisors.
Most franchise associations are borne from system-wide discontent centered on a major disputed issue. However, the value of these associations should transcend beyond resolving the dispute that originally spurred the association’s formation. Once a franchise association is formed, the group should promptly adopt an infrastructure with the tools and interest to provide benefits to its members in the long-run – regardless of whether its members face a crisis in the short-run.
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Courts in general have become so hostile to franchisees, that, even when a federal statute protects a limited class of franchisees (in this case, gas stations), they will go out of their way to find a valid ground of termination, no matter how small and insignificant. In a recent case in California (supposedly a franchisee-friendly state), a federal court ruled, in essence, that a termination of a franchisee’s gas station business was valid solely because the franchisee allegedly had failed to pay a mere $5000 associated with an old case between the gas station and the franchisee. Indeed, even a cursory review of the decision shows that the real reason for the termination (which was firmly supported by the court), was the franchisee’s having posted political signs in his service station.
In October 2005, Shahbazi posted two signs at the Marina station. The first sign read, “Consumers’ pain is big oil’s unearned profit! To oppose it see cash-ier.” “Big oils are price gouging and profiteering! To participate in roll back see cashier.” Shahbazi also stacked a newspaper rack at the Marina station with copies of a two-page letter, which included the following statement in its title: “‘Consumer Alert’ Outrageous goug-ing by all oil companies rip-off in action across the nation. Do not blame the operator of your neighborhood station.” The letter advised customers to “stop buying frrm ‘Company stores’ or from large distributor sites stations where [it] is pos-sible until prices go down to a fair market value.”