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NASFA Strives to Get It Right

John Sullivan

NASFA President.

In NASFA’s 34-year history, about 18 State Farm agents served as president and hundreds more have served on the board of directors. During their tenure, those presidents and board members had one primary goal — do everything possible to protect the status of independent contractor State Farm agents.

As your new president, I want to assure our thousands of members, as well as those agents who have not yet chosen to become members, that we will continue to do everything we can to carry on that proud tradition.

But as new terms of office for many of us begin, there is one major difference that separates us from previous board members and officers. We will be the first to begin our service after a major legal victory against State Farm.

As part of that victory, an impartial judge heard evidence from both sides and found that State Farm had violated the terms of the various Agent’s Agreements through the administration of its Partner Agent and Select Agent programs.

The impact of those victories would be significant enough if they applied only to NASFA members. But they did not apply only to NASFA members. The rulings by Judge Braman apply to each and every State Farm agent.

When that lawsuit was filed, the possibility that a successful outcome would affect all agents, placed a huge burden on NASFA to get it right. We believe that we did. But as important as those two victories are, the potential impact of the looming cases that will decide whether or not the businesses owned by State Farm agents meet the legal definition of a franchise will dwarf their significance.

Since the outcome of the new franchise cases could eventually redefine the relationship between State Farm and every one of its agents, not just members of NASFA, it once again places a tremendous responsibility on NASFA to get it right. We are continuing to get it right, and every one of the changes in the relationship between State Farm and its agents will be for the better.

Our lead attorney in these cases will be Michael Garner (www.dadygarner.com). In the Summer 2006 issue of The Mirror, we asked Michael to explain how a victory in our franchise case might redefine our relationship with the company. Once you have read Michael’s comments, we hope you will agree that each potential change will help strengthen our independent contractor relationship with State Farm.

Since the outcome of these cases could affect every State Farm agent, NASFA has a responsibility to keep every agent informed of their progress and provide some awareness of how franchise laws may impact their relationship with State Farm. Therefore, over the course of the next 12 months, all State Farm agents will receive at least a "mini" version of every issue of The Mirror that we publish. The smaller versions of The Mirror sent to non-members won’t be nearly as comprehensive as the version that NASFA members will receive.

We hope that you will want to know more than just the basics about franchise law and that you will want to make a positive investment in maintaining your status as an independent contractor by becoming a NASFA member and by making regular contributions to our legal fund. Since the speed in which we are able to obtain successful franchise declarations in various states is largely dependent upon the level of support that we receive from agents, please send in your membership application or your contribution to our legal fund today.

   

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