Keeping The Peace Franchise dispute? Try mediation, says New York.

The National Franchise Council (NFC) took one step forward inits quest to turn franchisors and franchisees away from litigationand toward mediation. This spring, state Attorney General EliotSpitzer made New York the first of 12 states with franchiseregulation to adopt the NFC's education process. Now theNFC's goal is to get the other states on board.

As it stands, if a franchisor commits a minor violation of theNew York Franchise Act (for example, not upholding the disclosurerequirement), the franchisor can go through NFC retraining infranchise sales practices rather than endure an enforcementproceeding and its consequences. "This shows franchisors arewilling to step up to the plate to solve problems and cooperatewith regulatory agencies, whether it's on a federal or statelevel," says NFC chair Morton Aronson.

New York franchisees benefit in several ways: Besides being ableto mediate disputes with franchisors, they essentially receivebetter disclosure documents from re-educated franchisors, and cansave time and money by dealing with the NFC as opposed to stateagencies or the Federal Trade Commission (with which the NFC has asimilar partnership).

So far, the program's future looks bright. "More stategovernments are starting to think outside the box and recognizethey can work creatively with the private sector to effectuatepublic policy goals," says NFC executive director Neil Simon.Word on the street is that partnerships from additional regulatorystates could arise in the near future.

In Memoriam

Giving peace to grieving families

Laying to rest the concerns of families in mourning has broughtPhilip G. Haddad Jr., 54, satisfaction far greater than anymonetary compensation could provide. A funeral director for 30-plusyears, Haddad founded Westborough, Massachusetts-based WestlandPerpetual Trust Inc. in 1987. The company contracts with thefamilies of the deceased to maintain and beautify cemetery plotsfor a minimum of 25 years. Earlier this year, Haddad decided toexpand nationally and is currently seeking representatives.

His nearly 20 representatives in 15 major U.S. cities serve asthe sales and marketing force and help families decide on one offour maintenance plans, while Westland's corporate officeensures the quality of the actual upkeep. "Our representativesdon't need bereavement experience," says Haddad, "butthey need to be compassionate, with a high energy level and a driveto assist [grieving] families."

A $300 investment covers necessary materials and training, andtaps into Westland's well-established reputation with big-namebanks and other sources for client referrals, including attorneys,trust officers, funeral directors, florists and monumentdealers.

To become a representative, be prepared to undergo a carefulselection process. As Haddad says, "We [work with] a familyfor a minimum of 25 years, [so we] become like a trusted familymember to just about every family we serve."

What's New

By Fabiola A. Escobar

Santa Ana, California-based Winchell's Donut House isaggressively seeking franchisees of other fast-foodconcepts--whether local, regional or national--to expand theWinchell's name with a dual brand-partnering agreement. LouFranson, vice president of brand management for privately ownedWinchell's, says dual-partnering offers accelerated growth forboth brands. "Dual-partnering allows the brands to expandwithout the hassle of negotiating lease agreements or buildingsites, which may take months [or even] longer," he explains.Depending on the market, start-up costs begin at $20,000.

Contact Source

Westland Perpetual Trust Inc., (800) 622-0772, fax: (508)836-2601