Even monkeys understand fairness

How some people think they can fool everyone is interesting.

Thanks to The Situationalist.

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2 Responses to Even monkeys understand fairness

  1. Carol Cross says:

    It is just lately that I have come to understand “franchising” as the most successful “confidence game” – perhaps – in the history of Capitalism!

    Certainly, the prospective and UNINFORMED buyers of business format franchises have NO idea of the inherent failure rate of franchised small businesses, said to be 50% at some time within the first five years of startup. (Read Scott Shane –Small Business Trends)

    It appears that government and the Congress have unlimited confidence in this sector of the economy. The SBA of the US will guarantee loans to 90% on franchises, knowing that the majority of these loans may fail before the time term of the loan is satisfied. Prospective franchisees are calculated sacrifices that may enable franchisors to beat these terrible odds if they can hide them from new buyers of their franchises.

    The FLAW in the federal Rule that governs the sale of franchises to the public appears to protect franchisors, who are not required under law to disclose “earnings” or ANY historical unit performance statistics of the UNITS that comprise the franchise systems to new buyers.

    It appears that the FLAW is premeditated and is public policy that encourages intentional fraud and tort against innocent investors in franchises who DO unknowingly buy franchises that are unprofitable and that fail at a rate of 50% at sometime within the first five years.

    This “public policy” is wrapped up in law that doesn’t permit any redress for franchisees who unknowingly invest in the “dogs” and “pigs” listed on the SBA Franchise Registry. One has only to read the article in a Google Search, entitled “Redressing Harm Caused by Misleading Franchise Disclosure” to understand how the deck is stacked against franchisees who unknowingly buy these high risk franchise offerings.

    http://thegreatfranchisingrobbery.blogspot.com

  2. Ray Borradale says:

    Nearly all the political debate and industry media releases avoid the ‘concept of fairness’ and franchising outcomes.

    Is it really too much to ask that outcomes and fairness be the basis for evaluating the economic and social performance of franchising rather than pure economic fear mongering without social conscience. It has been, it is but it is changing … very slowly.

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