On March 17, 2019, Keith Miller, Principal, Franchisee Advocacy Consulting, testified at the United States Senate Banking, Subcommittee on Economic Policy hearing titled, “Economic Mobility: Is the American Dream in Crisis?” Mr. Miller discussed some of the obstacles in franchising that hamper the efforts to realize the American Dream, concentrating on the lack of financial transparency that often leads to failure and the shattering of the dream, especially when SBA 7(a) loans are used. See his full statement and video of the hearing here. MaxIFOA looks forward to Senator Cortez Masto’s introduction of legislation aimed at increasing the transparency on SBA 7(a) loans and working towards passing that legislation into law.
I want to take
the opportunity to share my thoughts on the newly formed Max Independent
Franchise Owners Association and the potential benefits an association can have
for us as franchisees and business owners. First and foremost, an independent
association can represent much more than the apparent reason that MaxIFOA was
formed. We all know that the drive behind the formation of MaxIFOA was fueled
by the struggles our system has experienced since the sale of MM Corporate and
the frustration in lack of support and direction from the new corporate
ownership. I personally think, regardless of the reasons that sparked the
formation, an independent association for business owners in a specific
industry and/or organization is vital in today’s business market to increase
and maintain success.
With that being said, let me start with a little background on me and my
businesses. I’ve been a Max Muscle franchisee for 6+ years so while I’m not a
seasoned veteran in our system, I am by no means a new franchisee wondering
what direction is next. Fortunately, we are doing well and continuing to grow
and post a good profit each year. I say that to emphasize that those of us that
joined the MaxIFOA are not just those that feel that they are losing their
business and investment, although sadly, that is happening to some. I simply
understand and believe in the power and benefits of an association, especially
within a system that can and must do better. I also own and operate a high
volume liquor & wine store that I’ve owned for 14 years that has posted
record numbers over the last 3 years. With that being said, that business was
one of the opportunities that showed me the importance of an association. The
liquor/wine industry is state controlled in Mississippi so we must deal with
the state government on a regular basis. If you think a franchisor such as the
new ownership of Max Muscle is frustrating to deal with, imagine having to deal
with the government regularly for your business.
To put it
bluntly, the success and impact of an association such as MaxIFOA hinges on 3
main components:
The
primary consultant, lobbyist, and/or advocate – In this case, Keith Miller
is our Executive Director and will serve as a consultant for MaxIFOA. Keith’s
experience as a long time Subway franchisee and consultant for Franchisee
Advocacy makes him the perfect fit for this
role.
Board of
Directors, including the Chair, Vice-Chair, Treasurer, and Secretary – Mark
Sarale has stepped up to the role of Chairman and, I believe, with his business
experience, and experience within the Max Muscle system, he will do a stellar
job representing MaxIFOA. The board of directors are key for a strong
association, and just like any management organizational chart, this can change
as needed. It’s our association and every member will have a voice.
Membership
– membership base is extremely critical, simply for the fact that there is
strength in numbers. We not only have an opportunity to communicate our needs
to corporate with a strong voice, but we will have many other opportunities in
which to benefit such as bigger and better discounts through vendors, business
services, advertising agencies, etc. If structured properly and leadership
governs appropriately, these benefits will far outweigh the cost of association
dues (which by the way in tax deductible).
Allow me to
close by saying that I do not personally know Keith Miller. I do, however, like
to think that I am very good at business ownership, operation, and decision
making. I also know that if this association does not mitigate the changes,
demonstrate the improvement, and contribute to the benefits that I know a strong
association is capable of, then you and I can make a business decision to
either make changes or go another direction. I am urging those of you that have
not joined MaxIFOA to make the business decision to join and be a part of
something that can have real, positive impact within our franchise system, as
well as your business.
If you have any
reservations or would like more information on how an association can impact
our system, please do not hesitate to contact me to discuss.
March 26, 2019 – Today, franchise owners of Max Muscle® Nutrition have announced the formation of Max Independent Franchise Owners Association (MaxIFOA, Inc.), a self-funded alliance to represent their interests with the South Dakota-based company. The organization, while working with Max Muscle Nutrition®, will be a unifying voice of franchisees, focusing on franchisee profitability while enhancing the brand to positively impact the system.
“We are excited to be taking this step to formalize a franchisee voice”, states Mark Sarale, Chair of the interim board of directors and franchise owner from Northern California. “I, and the rest of the interim board, look forward to contacting and working with all the franchisees to improve our equity and voice within our brand”.
MaxIFOA has emphasized four (4) areas to help its franchisees: (1) addressing the royalty structure in light of today’s business model and the support received from the franchisor, (2) increasing the sharing of Internet sales revenue and data, (3) growing sales through improved product development, product safety and transparency to improve customer trust, and (4) seek transparency in the National Marketing Fund, added Sarale.
MaxIFOA has hired Keith Miller, Principal of Franchisee Advocacy Consulting, to serve as their Executive Director. “There is great potential in the power of the franchisees, as a collective group, to improve franchisee profitability and to rightly include their voice as a key stakeholder in the Max Muscle® Nutrition brand. I look forward to assisting them in their efforts”.
