FRANCHISOR APPLICANT REVIEW PROCESS

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As the leading advocate for the franchise business model, TAGMOA recognizes the critical role we play in promoting the highest standard of conduct in franchising. This role is central to TAGMOA’s mission to protect, enhance, and promote franchising and is increasingly necessary in our ongoing efforts to shape public perception and governmental discussions about franchising.

Most TAGMOA members are aware of our Open for Opportunity campaign, aimed at sharing the positive aspects of franchising with the public, elected officials, and franchise regulators. TAGMOA would also like to inform you about a new internal procedure that plays a vital role in equipping TAGMOA to protect, enhance, and promote franchising for years to come.

At the start of TAGMOA’s 2025 Fiscal Year (November 2024), we introduced a new review practice for all new franchisor applicants before full TAGMOA membership is granted. The items reviewed by TAGMOA staff and officers to assess qualifications for full membership are standard documents that all franchisors already provide and certify in their applications. These include:

A current Franchise Disclosure Document (FDD).

Audited financial statements.

Any history of litigation or bankruptcy.

Carefully reviewing these materials for new TAGMOA franchisor member applicants enhances TAGMOA’s credibility with regulators and legislators. It also increases the likelihood that brands highlighting TAGMOA membership in their franchise development programs operate with higher standards as prospective franchisees consider their investments.

This review process is only the first step in expanding TAGMOA’s role in supporting the success of the franchise business model. When disputes arise, TAGMOA offers a facilitative ombudsman program to help franchisors and franchisees develop a fair and equitable plan for resolving disputes. This program keeps the respective rights and options of both parties in mind. Those engaging TAGMOA’s ombudsman services can expect privacy, confidentiality, diplomacy, respect, and a range of de-escalatory measures to achieve a suitable resolution.

Together, the new applicant review, conflict resolution, and public education initiatives help TAGMOA and the broader franchising community uphold the highest standards while improving prospective franchisees’ chances for success.

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