Ontario justices are sending a strong message to franchisors to play nice when sharing profits.
Pet Valu, Midas, Shoppers Drug Mart, Quiznos, Tim Hortons, Bulk Barn, Sunoco…just the first.
The cases often revolve around how the franchisor uses its power to set the prices – both the prices that franchisees must pay for the products they sell, and how much they can sell them for.
“It’s about dividing up the profit pie. And the person who has the pie cutter is the franchisor. And so, they cut themselves the biggest piece,” Mr. Sterns said. “But on the other hand, the franchisees are the ones who put a lot of investment into making the pie.”
Mr. Shaw is absolutely right and absolutely wrong:
- The technology for organizing pre-trial franchisee groups is improving (daily) but
- This is just the tip of the iceberg.
I guarantee that.