Tim Hortons operators might listen to Bob Purvin’s sage advice about franchisee associations

April 28, 2017

Legal advice is necessary but it should not lead ANY franchisee group. Do not allow any lawyer to capture control.

AAFD chairman and founder Bob Purvin

In a conversation with BlueMauMau.org, AAFD Chairman Purvin: Power of Franchisees in Bargaining and Cooperatives in Reducing Costs:

SNIEGOWSKI: Some franchisee associations, frankly, seem banded together merely as an excuse for a class-action lawsuit against the franchisor to resolve a grievance, or at least the threat to the franchisor of one.

PURVIN: Sadly, that is too often the case.

If a lawsuit is the only reason for a franchisee association to exist, it will disappear five years after its startup or until the next round of franchise contract negotiations. The successful associations do more.

The Griswold Healthcare Franchise Association [GHFA] is an example. Franchisees created a fabulous task force on best practices that worked with the company to put on seminars each month. They have great turnouts for their seminars, which are done by webinar. They are now getting involved in lobbying, especially around the issue of caregiver wages. Their legal fund is dedicated to working with various state and local agencies over the rights of caregiver business owners.

Griswold created a products committee, where the franchisee association is now getting involved in the supplier side in a collaborative way. It is not just the franchisor that is cutting a deal with this supplier [getting kickbacks] and mandating that franchisees use that product to enrich the franchisor.

Associations can be more about the supply side than about renegotiating the franchise agreement.

Let me repeatAssociations can be more about the supply side than about renegotiating the franchise agreement.

American Association of Franchisees and Dealers

Rule of Thumb: add together what you’re paying for royalties and ad fund (ie. 4 and 3 = 7%). As a franchisee that does not have a franchisee-led and -owned buying co-operative, you’re putting an additional 7 per cent of hidden cash into your franchisor’s pocket via product and equipment costs.

AAFD-Conf-Logo-200px


At what point did you decide to choose power over truth?

March 27, 2017

For us, it was within a room of lawyers et al.

For what it’s worth, Terry and I decided that some money costs too much.


Who has profited most handsomely from the passage of the Ontario Arthur Wishart (Frachise Disclosure) Act, 2000?

March 27, 2017

The mega group, elite class action and Tier 2 franchise bar practioneers.

Notwithstanding a very receptive Superior Court, almost no mom-and-pop franchisees.

That’s precisely why no attorney pleads right to associate issues.

The franchise bar profits more from filtering and defeating frachisee claims.


Is there an economic value to knowing precisely who the “rebel” Tim Hortons franchisees are?

March 23, 2017

Yes, especially if the franchisor wanted to do a mass termination or consolidation of stores.

 

Who would likely collect and deliver the membership list?:

  • franchisor,
  • independent franchisee association – executives,
  • independent franchisee association – management,
  • association lawyer, or
  • franchisee advisors (former franchisor/founder, former president).

Probably the emails sent to a safe server as well.


My best work has always started around a single franchisee’s kitchen table.

March 23, 2017

A few franchisees with concern ask me to meet them at their home.

The problem-solving starts almost immediately.

Les Stewart

Midhurst, ON

705 737-4635

les.j.stewart-AT-gmail.com


Want to talk about your experiences as a Kahala franchisee since 2013?

May 12, 2016

Contact me.Kahala Brands

Kahala Brands:

  1. America’s Taco Shop
  2. Blimpie
  3. Cereality
  4. Cold Stone Creamery
  5. Frullati Cafe & Bakery
  6. Great Steak
  7. Johnnie’s New York Pizzeria
  8. Kahala Coffee Traders
  9. Maui Wowi Hawaiian
  10. NRgize Lifestyle Cafe
  11. Planet Smoothie
  12. Pinkberry
  13. Ranch1
  14. Rollerz
  15. Samurai Sam’s Teriyaki Grill
  16. Surf City Squeeze
  17. Taco Time
  18. Tasti D-Lite

Multi-unit and mom-and-pops. On or off the record.

Les: 705 737-4635. les.j.stewart-at-gmail.com


Ontario Franchise Law establishment: It started with Tony Martin, John Sotos and me.

March 5, 2016

But like all deceptions, the betrayal starts with one and then mushrooms to thousands. Two lure in several others.

justice

Justizia, by Luca Giordano

December 20, 2000 was the last time I met with Sotos and Martin. Sotos told a very interesting story:

It was his experience that those engage on the “shadow side” of large scale franchise disputes, suffer severe health consequences.

It was fatal for the dad in Ontario’s first franchise class action case, Bulk Barn. It was fatal for a friend called Julie.

Tony‘s not doing so well.

I don’t know how well John, David Sterns, Michael Webster, Jay Harris, Peter Webber, Andrei Oudovikine, Alexendre Oudovikine, Jonathan Lisus, Jeff Lefler and Franck Panczyk and their families are doing.

***

Justice (virtue)

Justice is one of the four cardinal virtues in classical European philosophy and Roman Catholicism. It is the moderation or mean between selfishness and selflessness – between having more and having less than one’s fair share.

Justice is closely related, in Christianity, to the practice of Charity (virtue) because it regulates the relationships with others. It is a cardinal virtue, which is to say “pivotal” because it regulates all such relationships, and is sometimes deemed the most important of the cardinal virtues.

 


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