Habitat for Humanity goes corporate?
Is franchising normal for non-profits? And if it is, is it normal to impose the contract 20 years after the fact?
Habitat for Humanity San Antonio has sued Habitat for Humanity International in Federal Court, claiming HHI abandoned its “Christian principles” in pursuit of “lucrative commercial franchise agreements.” Habitat San Antonio says HHI has no right to demand 10% of the local chapter’s $6 million in annual contributions, and no right to force it to sign a franchise agreement regulating use of the “Habitat for Humanity” name.
Habitat for Humanity Sued by Affiliate - New York Times
The San Antonio affiliate, which built the first Habitat house, is seeking a court ruling that would allow it to continue to use the Habitat name without signing the agreement, which it contends gives the international organization too much power over its assets and operations.
“We have about $21 million in buildings and other tangible and intangible assets that we’ve acquired over 31 years on our own, and this agreement gives them unilateral and total control over us,” said Rene Diaz, chairman of the San Antonio Habitat’s board and a professional mediator. “If we fall out of favor, they could come in and take over everything and we couldn’t do a thing about it.”
Does this mean Jimmy Carter will only work with organizations that have franchise agreements?
Technorati Tags: Habitat for Humanity, San Antonio, Franchise Agreement
Filed under: Habitat for Humanity
