Quesada Mexican Grill: just another over-hyped franchise pump-and-dump development deal?

April 28, 2013

Let me get this straight: based on 3 years of franchising experience, they’re going to go from 15 to 300 in 5 years? [20 times the size]

Quesada_logo

Franchisors have never been shy about risking other-peoples’-money.

Quesada President Tom O’Neill in QSR magazine called Canadian Mexican Brand Plans to Hit 300 Units in 5 Years:

The company expects to open about 300 franchised restaurants in the next five years. “Our game plan,” says O’Neill, “is to double in
 size every 12 months.”

Double every 12 months? Really? Anybody’s business doubling for 2 years in a row nowadays? And the risk to every franchisee when the franchisor spins out of control?

  • Brutal…all equity gone.

This couldn’t be another pump-and-dump deal that leaves the area developers and their franchisees holding the bag just like Krispy Kreme…Could it? See Burnt to a Crisp on WikidFranchise.org.

Canada Franchise AssociationListing

Quesada Franchising of Canada Corp.
Eat More Burritos
Franchise Fee: $20K
Startup Capital Required: $60K-$75K
Investment Required: $152K-$242K
Available Territories: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia, Prince Edward Island
Training: 2 weeks
Franchise Units Canada: 11
Corporate Units Canada: 4
In Business Since: 2004
Franchising Since: 2010
CFA Member Since: 2010

Source


Who gets hurt when hundreds of families are attacked?

February 8, 2011

Not visible at CFA galas perhaps.

[Copyranter]


Ontario franchisees: 9 months to our most important provincial election ever

January 7, 2011

Best chance ever to protect franchise families.

If you won’t act to support pro-franchisee MPP candidates in 2011,  Why the hell should they give you what you want in the face of the demands to the contrary by Big Auto, Grocery and Oil, their fat cat lawyers and the Canadian Franchise Association?

You, your spouse and your family want:

To Do:

  1. Call your current MPPs constituency office (see here, postal code lookup) and ask for a 10 minute interview. Insist, take your spouse and follow-up in writing.
  2. Offer to and then donate as a sign of goodwill to (a) your home riding and (b) the Bill 102’s co-sponsors: Jaczek, DiNovo & Miller (time preferably but $ only if lazy).
  3. Handwrite a note to each party leader’s riding office: McGuinty, Hudak & Horwath.

Stand up because the backroom weasels have been all over Queen’s Park saying that your family doesn’t deserve what little protection that the Wishart Act gives you now.

Need a vehicle, a Tims or a Big Mac this year?

  • Ask your local franchisee if he’s going to continue to sit on his hands this time out or will he stand up on his 2 legs with you?

People sacrificed for these democratic rights.

For selfish reasons alone, use them or lose them.


Is a weak/any franchise law better than no franchise law?

October 31, 2010

In my opinion, no.

Why I believe this goes back a little ways.

No Law: In 1998, Mr. Ken Fong, McDonald’s Canada, VP and Corporate Counsel formed an industry  committee together to discuss ways and means to have industry disputes heard in other than the Courts. I attended as the founder and president of the Canadian Alliance of Franchise Operators, CAFO the 1st and only national franchisee advocacy group.

In Feb 1999, I was vigorously questioned by a couple of the 2nd Tier attorneys on the committee about my unwillingness to accept a “disclosure-only” law solution. The industry wanted a law to give an impression of order and oversight in what was seen as the “wild west of the business world”. They wanted what I subsequently defined as a McLaw: toothless legislation designed to protect the dominant parties.

It became apparent at that meeting that CAFO either:

  1. agreed with their desire for a McLaw or
  2. CAFO/Les was not welcomed at the meeting.

I quickly showed the work we had done on the corporate Identification of a proposed industry dispute resolution process, thanked Mr. Fong and shook his hand, and left the meeting.

McLaw passed: In June 2000, I sat with some other franchisees in the opposition guest gallery at the Ontario legislative assembly and watched the Canadian Franchise Association get the law they wanted: Arthur Wishart Act (Franchise Law), 2000.

However, the Ontario judiciary are not easily intimidated, black-balled  or threatened.

Judge-made law: Provincial court justices are smart, independent-minded (no elections) and not easily fooled. Since 2000, they have tended to assume that the Wishart Act was passed as a sincere piece of legislation and that its intent was to protect franchisees.

I listened to Chief Justice Winkler last year at the Ontario Bar Association’ Franchise Law Conference in Toronto and he was just great! He told the +100 attorneys that every justice knows the “deal” about franchising because they have all had franchisee clients before being called to the bench. One of the two attorneys at side seemed a little ill-at-ease.

I can hardly wait for Thursday to see what Ms. Debi M. Sutin (Gowling Lafleur Henderson LLP) and Ian N. Roher (Teplitsky, Colson LLP) as co-chairs will be presenting.

Record attendance again in 2010, I bet.


Cut the crap. Gimme me some more of these Talking Heads

October 27, 2010

This ain’t no party, This ain’t no disco: Stop fooling around.

A media release

In the world of franchising, few brands have the luxury of expanding their business with a cult-like brand following and organic public interest. Vancouver based franchisor, Men in Kilts, is among the lucky few who have had this experience. Rather than going through the usual motions of aggressively marketing and blanket selling franchises, the company is literally turning down hundreds of would-be franchisees. The rationale behind this decision? An uncompromising model of sustainable, long term growth that is heavily focused on the success of individual franchises – a system strategically designed to attract the best-of-the-best.

Member of the Canadian Franchise Association? Nope.

  • Key success factors: Watching someone in a dress power wash your house?

My, my. my.

Life During Wartime, Talking Heads from the 1984 documentary Stop Making Sense

Heard of a van that is loaded with weapons
packed up and ready to go
Heard of some gravesites, out by the highway
a place where nobody knows
The sound of gunfire, off in the distance
I’m getting used to it now
Lived in a brownstone, lived in the ghetto
I’ve lived all over this town

This ain’t no party, this ain’t no disco
this ain’t no fooling around
No time for dancing, or lovey dovey
I ain’t got time for that now

Transmit the message, to the receiver
hope for an answer some day
I got three passports, couple of visas
don’t even know my real name
High on a hillside, trucks are loading
everything’s ready to roll
I sleep in the daytime, I work in the nightime
I might not ever get home

This ain’t no party, this ain’t no disco
this ain’t no fooling around
This ain’t no Mudd club, or C. B. G. B.
I ain’t got time for that now

Heard about Houston? Heard about Detroit?
Heard about Pittsburgh, PA?
You oughta know not to stand by the window
somebody might see you up there
I got some groceries, some peanut butter
to last a couple of days
But I ain’t got no speakers
ain’t got no headphones
ain’t got no records to play

Why stay in college? Why go to night school?
Gonna be different this time?
Can’t write a letter, can’t send a postcard
I can’t write nothing at all
This ain’t no party, this ain’t no disco
this ain’t no fooling around
I’d love you hold you, I’d like to kiss you
I ain’t got no time for that now

Trouble in transit, got through the roadblock
we blended in with the crowd
We got computers, we’re tapping phone lines
I know that ain’t allowed
We dress like students, we dress like housewives
or in a suit and a tie
I changed my hairstyle so many times now
don’t know what I look like!
You make me shiver, I feel so tender
we make a pretty good team
Don’t get exhausted, I’ll do some driving
you ought to get you some sleep
Get you instructions, follow directions
then you should change your address
Maybe tomorrow, maybe the next day
whatever you think is best
Burned all my notebooks, what good are notebooks?
They won’t help me survive
My chest is aching, burns like a furnace
the burning keeps me alive
Try to stay healthy, physical fitness
don’t want to catch no disease
Try to be careful, don’t take no chances
you better watch what you say


This is a beef cow. Its ear is tagged to assign accountability if a steak kills someone.

October 1, 2010

 

Franchisees are not tagged, counted or valued in Ontario.

In all legitimate commercial activities,  If you want something you better count it. Can you imagine anybody not counting money in a bank? An auto industry without !SO standards?

cow People are More important than franchisee People

  1. Each cow is carefully counted, tracked, protected from disease,  and measured from birth to slaughter. There is sufficient regulation in place to protect public food safety. It is accessible for academic study.
  2. Franchisee are increasingly butchered for their life savings (bisons on the prairies).

Why should a government care about what an industry says when the elite refuses to maintain an independent, transparent method for tracking their franchise investors success or failures? This is particularly interesting when the Canadian Franchise Association, CFA suggests that they represent both franchisors AND franchisees which begs the fundamental existential agricultural question:

What half-assed farmer doesn’t bother to count their stock even though they have all the resources in the world to do so?

Mr. Cynical Bastard: It’s all about the flesh trade being passed off as a milking operation.

How anyone can legislate when there are zero credible quantitative measures to go by, is beyond me. The 1998 stats define the term “wonky”: the CFA simply takes the numbers the IFA commissions and divides them by “10” to Canadian-ize them. * This is the basis for overseeing/ignoring 40,000 (?) Ontario familys’ life savings.

* notwithstanding the fact that the U.S. has roughly 100 times Canada’s GDP and that there were, allegedly, 5,000 new lawsuits per year in Ontario  in 1998.

It’s enough to make a wolf smile.

Listen to a good Dr: Robert Hare says you should avoid subcriminal psychopathy and, if forced to deal with animals, keep them on a very short leash. That heaviness you’re feeling comes from a close encounter with what has been traditionally defined in Western society as evil.

As the majority of smart Ontario capitalists know after 4 decades of highly-publicized fraud:

Don’t rent any unilaterally changeable business model where your success or failure is never counted by anyone (eg. don’t fly on an airplane if a publicly accountable count of accidents is suppressed by the the airline trade association).

Double that when the “experts” want to trap in an ironclad  zero-sum situation (you lose, someone else wins) created by your own life savings (sunk cost).


Salad Creations Canada: two time award-winning CFA franchisor?

August 9, 2010

Salad Creations Canada and the Canadian Franchise Association (CFA):

birds of a feather flock together.


Sotos LLP: The McDonalds of CDN franchisee lawyers?

November 27, 2009

I have learned directly, personally, in-their-armpits relationships from the best in franchising.

Ted Gorski, McDonald’s, CollegePro Painters, Nutri-Lawn, Tony Martin, Canadian Imperial Bank of Commerce, Sam Grange, John Lorinc, Paul Herminston, Katherine Swinton, Canadian Franchise Association, Country Style, Gillian Hadfield, Michael Webster, Jay Harris, etc. They’re all brilliant in their areas of expertise.

When I got into a corner and thought I needed legal help I hired the best I couldn’t afford. John Sotos was my on-and-off-again lawyer from 1998 t0 2000 and I learned a great many things from John and his partner David Sterns. Both John and Michael told me to look at and talk to the banks. Oddly enough, the first lawyer I talked to about franchising in 1982 is now a Ontario Superior Court justice in Barrie. I like lawyers but they’ve got to cover their rent too, you know!

Many franchisees want to fight.

That’s good…and bad at the same time.

Many franchisees think in terms of black and white; now or never; us/them.

That’s good…and bad at the same time.

Many franchisees would rather choose a “white knight” professional instead of a group of franchisees plotting their own course.

That’s not good…and really, really horribly bad.

The McDonald’s U.S.A. president described his corporation as a real estate company with an interest in hamburgers. Let me repeat: McDonald’s is a landlord (to franchisees) with an interest in fast food.

I learned that the economics of modern litigation is very similar.

  1. The franchise industry legal cash flows = 95% by franchisors,
  2. Once the retainer is paid any consultants are shown the door (only one expert, please),
  3. Franchisees are one-shot clients (v. repeat business for franchisors),
  4. Disclosure laws are a God-send for billable hours, and
  5. The industry has a very, very long memory for those that oppose it’s interests.

All lawyers are businesspeople that operate in a near-monopoly on certain words and concepts.

Learning these terms is not hard if you have (1) a learning tool and (2) a willingness to face some difficult facts.

Most let their emotions rule their decision making (ie. denial and fear) but in their defense, aren’t really conscious of doing so. They’ve been conditioned to be on their knees and look to Daddy for acceptance.

Education is the only way out.

WikidFranchise.org


National franchisor sales teams: Creating the Illusion of Respectability

August 19, 2009

GoodHousekeepingSealWhat do all these associations have in common with the Good Housekeeping Seal of Approval?

They are organizations controlled by franchisors that promote the sale of franchises into national jurisdictions.

  • That is all they do: sell.
  • There is no quality, at all, in what they do.

They also have, at best, voluntary Codes of Ethics which are almost never enforced.

In fact, some of the worst predatory franchise systems I have ever known, are long-standing members. It pays for them to join to bolster their credibility.

  • Do not be fooled: these members are NOT  a measure of investor worthiness.

In many cases, predators use this Mask of Respectability to disarm unwary potential franchise investors.

  • World Franchise Council: Enhancing the global Franchise Community Take a look.
  • International Franchise Association
  • Canadian Franchise Association
  • Franchise Council of Australia
  • Franchise Association of New Zealand
  • China Chain Store & Franchise Association
  • The Franchise Association of Southern Africa
  • British Franchise Association

As usual, I am always very pleased to debate any representatives from these organizations.

Or anyone from their financial institutions which buttress this facade.

WorldFranCouncillogoInternationalFranchiseAssociationCanadianFranchiseAssociationFranchiseCouncilofAustraliaFranchiseAssociationofNewZealandChinaChainStore&FranchiseAssociation

FranchiseAssociaitonofSouthernAfricaBritishFranchiseAsscoation


Earnings Claims in CDN franchising: $75,000 for 12 days work?

February 11, 2009

sipnsnackThis is an advertisement in today’s Toronto Star.

It is a listing under the “Franchising” section. At least 50% of the ad space in this section is hyping the Canadian Franchise Association’s upcoming The Franchise Show.

The Canadian Franchise Association bills themselves as “the national voice for Canadian franchising“.

Let’s see exactly what this alleged franchisor has to say for itself:

1. Earn $75,000 per year for 1 day of work per month. I guess that corresponds to $781.25 per hour (8 hours per day). Or if you wanted to work 2,000 hours per year, you’d be making $1,562,500 peddling branded drinks. This is what passes for investor protection in Ontario, more than 8 years after the passage of the Arthur Wishart Act (Franchise Disclosure).

2. Note how the extremely unknown franchise system trades on transnational brand titans such as Pepsi, Doritos, Lays, Red Bull, etc. This is a classic persuasion technique the confers legitimacy by associating with authority (this time, marketing or brand strength that “Attracts Customers like a Powerful Money Magnet!“)

3. It promises a system: it bundles locations with package. Why the heck at these revenue per hour figures doesn’t the franchisor just hire some flunky to stock the machines? This goes to the usual “turn key” proposition of a “proven system” that usually turns out to be nothing of the kind.

4. The flash “Now Launching in the GTA!” serves two masters: (a) it explains why no one has ever heard of Sip-N-Snack and (b) it lures those that want something new, special or up-and-coming. The phrase “This here poo-collecting franchise is the next McDonald’s…” is a related rhetorical come-on for the overly-trusting.

5. Placing the advertisement in the franchise section is intended to confer legitimacy or utilize social proof: other better-known franchise brands in the ads around this ad. This is important because this might well be the cheesiest fly by-night equipment business opportunity scam imaginable.

6. The total price point is important. At $16,995, if this were a total scam, very few investors would sue to recover their loses. The cops usually won’t investigate anything under $250,000 and the retainer for a lawyer is +$1,000. Like 99% of the defrauded, they won’t even report it to the local police and the Competition Bureau is a bloody lapdog.

7. Note the recognizable logo: Pespsi-Cola. And 5 exclamation points. This must be a hot deal!!!!! (Just because it is corny does not mean it isn’t really effective on a certain percentage of the population.) Fraud cuts across many socio-economic levels.

8. If this is a scam, the money is quickly sent away; well beyond the reach of any litigation or police investigation. Con games are well-thought out beforehand and the three-card monte table is quickly folded up.

9. But still if 10 people bite, that’s an okay return on investment for the franchisor and it keeps the revenue wheels turning at The Toronto Star, too.

10. Canada is a well-known white-collar crime incubator as recently portrayed by the CBC Marketplace in Buying into the pitch to become rich. In all confidence games, more than 50% of the marks are good for a second fleecing.

Any comments, particularly from those knowledgable about business opportunity frauds are welcomed.


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