Your quest for franchisee justice will lead you to a “white knight” lawyer who will betray you.

September 2, 2013

The franchise bar appears to 1st time user franchisees as fundamentally fair, adversarial and zero sumThat is a dangerous myth.

(c) Walker Art Gallery; Supplied by The Public Catalogue Foundation

The economic incentives for the “franchisee-friendly attorneys” are to give the pretence of a fair fight (definition: an attempt to make something that is not the case appear true OED) since your being sold-out can be easily explained. Franchisee stupidity and shortsightedness is the most cited, least reality-based reason given.

Answer:

Your franchisee attorney will defect on 100% of all large cases because the franchise industry is effectively a single-payer industry for legal services (franchisors: +95%). As in other human waste treatment systems, the franchise bar functions to let pass the little cases go to trial (to keep the payers fearful and motivated) but skims off the large chunks for the elite 2 firms.

Question:

Why would any franchisor pay out 100% of a massive claim to a group of franchisees for multi-year bad faith dealings when they could cut two cheques (1. their own lawyers and 2. your attorney) to manage the case to a “satisfactory conclusion”? Would 10 per cent of what franchisees are owed be a reasonably figure?

If you were a rational, profit-maximizing multi-decade career Big Franchising professional (who has their own very high sunk costs invested in the status quo industry practices and structure, btw), Wouldn’t YOU just keep your mouth shut, turn a blind eye and play along, too?

There are ways to deal with these perfectly explainable and rational, multiple-level credence good dangers but you may need to start serving legitimate authority instead of the posers that scatter when the light switch goes on the industry.

Sir Galahad:The Quest of the Holy Grail,  Arthur Hughes, 1870.


Numbing the senses by monotonously repeating an assertion is a key element in utilizing mind control techniques.

January 31, 2013

Franchising is more successful than independent business. (meme)

Total War

A big lie and monotonously repeated nonsense have more emotional appeal in a cold war than logic and reason.

Quote:

. . . well publicized facts are always the bane to the mind controllers.

Such is the Pavlovian device, repeat mechanically your assumptions and suggestions, diminish the opportunity of communicating dissent and opposition. This is the simple formula for political conditioning of the masses.

The flight from study and awareness is much too common in a world that throws too many confusing pictures to the individual. For the sake of our democracy, based on freedom and individualism, we have to bring ourselves back to study again and again. Otherwise, we can become easy victims of a well-planned verbal attack on our minds and our consciences.

 Dr. Joost A. M. Meerloo 1903 – 1976


Incentives favour franchisee attorneys defecting from their clients’ interests

October 5, 2012

The good grasp of the academic disciple of Law and Economics is necessary in understanding franchising.

Economics is (almost) all about incentives: A highly unified profession, serving a highly centralized, tightly disciplined franchisor-dominant industry  would lead the observer to predict very high levels of attorney-generated opportunism (self-interest + deceit) at the expense of their clients: individuals and groups of franchisees. The rational lawyer defects because that decision makes the best of a highly imperfect information situation.  The new franchisee bar member quickly realizes that economic survival depends on his or her obedience as a gatekeeper for the “team”, in stark contrast to a Canadian justice system that is more and more sympathetic to franchisee arguments.

Hadfield is required reading for franchisees considering contracting for such high-risk legal services (credence goods).

The Price of Law: How the Market for Lawyers Distorts the Justice System

Gillian Hadfield
USC Law School and Department of Economics
October 1999
Michigan Law Review, Vol. 98, No. 4, 2000

Abstract:
This paper begins with the question, Why do lawyers cost so much? The analysis is an investigation of the imperfections in the market for lawyers, imperfections that have been largely overlooked by focus on either the model of perfect competition or the impact of artificial barriers to entry into the provision of legal services. The paper catalogues multiple sources of imperfection: the nature of the incentives and mechanisms at work to determine the level of complexity in the system; the extent to which complexity and uncertainty make legal services into credence goods par exellence; the winner-take-all and tournament nature of the competition among lawyers; the sunk costs of lawyer-client relationships and hence the potential for opportunism and the limited potential for conventional market mechanisms to control opportunism; the incremental nature of legal fees–which structures legal expenditures as a sunk cost auction in which the cost of services can easily and rationally exceed the amount at stake; and three sources of monopoly–the familiar monopoly established by artificial barriers to entry, the “natural” monopoly arising from the limited supply of individuals in the economy with the cognitive skills necessary to engage effectively in competitive legal reasoning, and the state’s monopoly over coercive dispute resolution.

The analysis uncovers deeply disturbing implications for justice from the economics of the market for lawyers. The price dynamics of the system operate within the framework of a unified profession/unified legal system that essentially puts individual clients–with justice interests at stake–into a bidding contest with corporate clients with efficiency (more generally, market) interests at stake. Corporations by definition are aggregations of individual wealth and, as a consequence, are able to bid for the resources; they also are a richer feeding ground for the wealth extraction generated by the imperfections/monopoly aspects of the market for lawyers. This is not an ethical critique of lawyers; it is the implication of ordinary economic response to incentives structured by a non-competitive market.

The economic dynamics of the market for lawyers operate like a vacuum, drawing the resources of the system into the corporate sphere, in the service (from a public perspective) of efficiency, and away from the individual sphere, in the service of justice as in the relationships between the individual and the state, the market, the family, the community and so on. This stands on its head the lexicographic relationship between efficiency and justice: efficiency is of normative significance only to the extent it promotes individual welfare through just social relations.

The implications of the economic analysis in the paper are supported by the empirical evidence we have about the structure of the legal profession and the changes over the past several decades. The profession is roughly divided into two segments–one serving business clients and one serving individual clients. The business segment is populated by lawyers who graduated from elite institutions, who are well-connected and influential in the profession, who charge high fees and earn high incomes, and who are perceived to be in short supply. These lawyers work in large firms or high-end boutiques and are increasingly likely to be specialized. Their work is perceived to be of the highest level of prestige by all members of the profession. The personal segment is populated by lawyers who graduate from lower-tier schools, charge lower fees and often flat fees set in apparently competitive fashion providing largely routine, non-contested legal services such as house closings, uncontested divorces and wills. Their work is perceived, by them and the rest of the profession, as low prestige. Lawyers in this segment tend to work in solo practice or small general practice firms. The supply of lawyers in this segment is perceived to exceed demand, and there is evidence of un/underemployment and falling prices.

The allocation of total hours spent by lawyers on legal work is increasingly skewed towards the business segment of the profession, and thus towards the efficiency and away from the individual justice goals of the justice system. [my emphasis]

Number of Pages in PDF File: 84

Accepted Paper Series

Download from SSRN here.

 


Franchising is processed as if it were a prison.

August 29, 2012

Phil Zimbardo says evil comes from hierarchy.

The Stanford Prison Experiment

  • Franchising harms people, over time by both sides (see Clay/Prisoner 416 and mock guard talk: start at 2:46). No regret, guilt. Only after upon reflection.
  • Prisoner 8612 @ 1:36 (after 36 hours ‘incarceration”)
  • Let me in on some knowledge…I know you’re a nice guy (You don’t know that).
  • People didn’t say anything.
  • Prisoner 819 did a bad thing… I have to prove I’m not a bad prisoner.
  • The situation degrades over time.
  • How program dissenters are treated by peers and guards (one sign of resistance: Prisoner 416). The guards go crazy. Not a hero but a troublemaker.
  • The Stanford Prison Experiment Slide Show

Problems with authority. Breaks from reality. Damaged feeling function. Lack of trust. Anger. Barrenness.

What do you think they chose? Most elected to keep their blanket and let their fellow prisoner suffer in solitary all night.


Those who do not move, do not notice their chains.

August 27, 2012

At most, 2% of franchisees need to be willing to act.

Soon, zero per cent will be necessary: An outside agent can do all the change work.

There has never been a better time to oppose franchising tyranny. Those that do will simply be kicking in of a rotten door.

Freedom is always the freedom of dissenters.

Rosa Luxemburg 1871 – 1919


…unnatural men, machine men, with machine minds and machine hearts.

July 22, 2012

…men will rise above their hate, their greed and brutality.

The Great Dictator, 1940

“Speak – it is our only hope” “Hope –

I’m sorry but I don’t want to be an Emperor – that’s not my business – I don’t want to rule or conquer anyone. I should like to help everyone if possible, Jew, gentile, black man, white. We all want to help one another, human beings are like that.

We all want to live by each other’s happiness, not by each other’s misery. We don’t want to hate and despise one another. In this world there is room for everyone and the earth is rich and can provide for everyone.

The way of life can be free and beautiful.

But we have lost the way. Greed has poisoned men’s souls – has barricaded the world with hate; has goose-stepped us into misery and bloodshed. We have developed speed but we have shut ourselves in: machinery that gives abundance has left us in want. Our knowledge has made us cynical, our cleverness hard and unkind. We think too much and feel too little: More than machinery we need humanity; More than cleverness we need kindness and gentleness. Without these qualities, life will be violent and all will be lost. The airplane and the radio have brought us closer together. The very nature of these inventions cries out for the goodness in men, cries out for universal brotherhood for the unity of us all. Even now my voice is reaching millions throughout the world, millions of despairing men, women and little children, victims of a system that makes men torture and imprison innocent people. To those who can hear me I say “Do not despair”.

The misery that is now upon us is but the passing of greed, the bitterness of men who fear the way of human progress: the hate of men will pass and dictators die and the power they took from the people , will return to the people and so long as men die [now] liberty will never perish. . .

Soldiers – don’t give yourselves to brutes, men who despise you and enslave you – who regiment your lives, tell you what to do, what to think and what to feel, who drill you, diet you, treat you as cattle, as cannon fodder.

Don’t give yourselves to these unnatural men, machine men, with machine minds and machine hearts. You are not machines. You are not cattle. You are men. You have the love of humanity in your hearts. You don’t hate – only the unloved hate. Only the unloved and the unnatural. Soldiers – don’t fight for slavery, fight for liberty.

In the seventeenth chapter of Saint Luke it is written “the kingdom of God is within man ” – not one man, nor a group of men – but in all men – in you, the people.

You the people have the power, the power to create machines, the power to create happiness. You the people have the power to make life free and beautiful, to make this life a wonderful adventure. Then in the name of democracy let’s use that power – let us all unite. Let us fight for a new world, a decent world that will give men a chance to work, that will give you the future and old age and security. By the promise of these things, brutes have risen to power, but they lie. They do not fulfil their promise, they never will. Dictators free themselves but they enslave the people. Now let us fight to fulfil that promise. Let us fight to free the world, to do away with national barriers, do away with greed, with hate and intolerance. Let us fight for a world of reason, a world where science and progress will lead to all men’s happiness.

Soldiers – in the name of democracy, let us all unite!

[. . .]

Hannah can you hear me? Wherever you are, look up Hannah. The clouds are lifting – the sun is breaking through. We are coming out of the darkness into the light. We are coming into a new world. A kindlier new world where men will rise above their hate, their greed and brutality.

The soul of man has been given wings – and at last he is beginning to fly. He is flying into the rainbow – into the light of hope – into the future, the glorious future that belongs to you, to me and to all of us. Look up, Hannah. Look up.

Hannah, did you hear that?

Listen.


Every day you do nothing about your own entrapment, adds 1.5 days of despair for your children.

July 20, 2012

You’re teaching them that their father’s human rights are bought-and-paid-for by others.

The only worthwhile effort is one without any hope of immediate success.

Every child, instinctively,  understands and is energized by this truth. By choosing life rather than death (Eros and Thanatos).

Authority grinds that truth out of you as you were socialized.

Mr. Fish on Truthdig


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