SAN DIEGO, May 17, 2001 (PRIMEZONE) -- The American Association of Franchisees and Dealers (AAFD) announced that it is awarding its prestigious Fair Franchising Seal to Charlotte-based Meineke Discount Mufflers, Inc. (Meineke). Meineke is the first automotive industry franchisor to earn the Seal.
The Fair Franchising Seal is awarded to franchisors nominated by their own independent franchisee association or Franchise Advisory Council as having an exemplary record of franchise practices that embody equity, fairness and service to the organization.
In order to earn the franchising seal, the nominated company's franchise agreement must be consistent with the spirit of AAFD's Fair Franchising Standards and the company must receive approval from at least 75% of its franchisees in a confidential survey conducted by the AAFD. Meineke's franchise agreement received a rating of 92% conformance to the AAFD's Fair Franchising Standards, the highest grade ever given by the AAFD's Standards Committee, and Meineke franchisees voted a resounding 92% in favor of granting the award.
"We are very proud to have been nominated and honored with this distinguished seal," said Ken Walker, CEO of Meineke. "It is particularly meaningful because our franchisees were the ones to vote for us to receive the AAFD Seal, a recognition that reflects on fairness and what I believe to be the backbone of our entire organization. In truth, this award reflects the hard work of our entire franchise system, both franchisees and management, and we are all deserving of the credit."
Commented Robert Purvin, chairman of the AAFD, "The importance of the AAFD Fair Franchising Seal is that it rewards exemplary practices in the franchising marketplace. With the Seal, franchise buyers have a legitimate standard by which to judge a franchise opportunity -- an effective vote of confidence and approval by the system's own franchise owners."
According to Richard L. Rosen, Chairman of the AAFD Fair Franchising Standards Committee, "The members of the Standards Committee are gratified that the AAFD's Fair Franchising Seal has been awarded to Meineke. The Fair Franchising Standards were promulgated to set guideposts along which franchisors and franchisees could travel to reach a more equitably balanced relationship. The awarding of the Seal to Meineke is another indication that Fair Franchising is not only attainable but, in many cases, a reality."
Completing a turn around following several years of system disharmony, Meineke symbolizes the AAFD's conviction that fair franchising is good business. The Meineke story is a classic example of the AAFD's concept of Total Quality Franchising.
Just 5 years ago, Meineke was mired in a class action lawsuit with a significant number of its franchisees. Ken Walker was brought on board to turn the fortunes of the company. Walker soon came to recognize that "trust was lost within the franchise network, and needed to be restored for the company to prosper." A landmark jury verdict in favor of the franchisee plaintiffs, followed by a breathtaking appellate court reversal, helped to further deteriorate the franchise relationship.
Five years later, the company has made a significant statement by dedicating itself to promoting fair franchising relationships, has turned around its relationship with its franchisees, and is now recognized as a progressive and fast-growing competitor in the automotive services industry. Said Walker, "In the past year, we have set a system record for new franchise openings -- it is all about our new contract and commitment to a quality franchise relationship."
The turn around at Meineke is complete with the vote of its franchise owners awarding the company the AAFD's Fair Franchising Seal. Five years ago, the thought of Meineke achieving the accolades of its franchise network would have seemed impossible. But in an extraordinary demonstration of quality management, new President Walker recognized the necessity of restoring trust within the franchise network and trusted his negotiating skills to develop a relationship that meets the legitimate business needs of both the corporate ownership and the franchise network.
The new Meineke franchise agreement sets a dramatic new standard for a fair and balanced franchise relationship. With this agreement, the first drafted with the AAFD Standards in mind, the parties were able to steer a course that, through careful negotiation and compromise, was able to satisfy the needs of Meineke and its franchisees, and set the chain toward a productive era of competitive enterprise.
Said Purvin, "Meineke's turn around had everything to do with Ken Walker's tenacious management, which was based, in part, on earning the trust of his franchise owners through his own willingness to trust them." Purvin added, "Meineke took the risk to negotiate a balanced franchise agreement and relationship and by recognizing an independent franchisee association. Mostly, Walker allowed his franchise owners to invest in the reinvention of Meineke, and to establish a new and positive era for the system."
The American Association of Franchisees and Dealers is the oldest and largest direct member, non-profit trade association representing the interests of franchisees and independent dealer networks throughout the United States. Stressing market solutions and franchisee empowerment through independent franchisee associations, the AAFD has grown to represent more than 12,000 franchised businesses nationwide.
Photo available for this release: Meineke CEO, Ken Walker, accepts Fair Franchising Seal from AAFD Chair, Robert Purvin To view photo, go to www.enewsrelease.com/pressroom and enter release I.D. 26709
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CONTACT: The American Association of Franchisees and Dealers
San Diego
Robert L. Purvin, Jr., Chair, Board of Trustees
(800) 733-9858
Fax: 619-209-3777
benefits@AAFD.org
www.AAFD.org