Power always trumps legal rights for franchisees

Almost all of franchisees’ problems as business problems, not legal ones.

They have to do with power and profits not who has this or that right on paper.

Anonymous information sharing via a trusted hub.

Power networks are created across franchise systems via information sharing.

Diagram: a social network

One Response to Power always trumps legal rights for franchisees

  1. Carol Cross says:

    I agree! The Internet and Modern Technology will make it possible for franchisees to share information with each other to strengthen their bargaining position with their franchisor. The franchisor cannot afford to ignore a united franchisee association. With a united franchisee association, the balance of power changes a little because the franchisees and their contracts are the franchisors principal asset. If each the franchisee and the franchisor need each other, why shouldn’t the balance of power be somewhat equal, instead of clearly manipulated by the status quo of law and process to favor the franchisor.

    I agree! Once the standard franchise contract has been signed, the franchisee has unknowingly signed away almost all of their due process rights; the legal deck is stacked against franchisees, and there are no affordable legal solutions available for the “lone” franchisee when confronting his franchisor. “United” they all have a better chance of standing and “Divided” it becomes easy for the franchisors to bring selected franchisees to their knees out of view of the other franchisees in the system.

    We realize that the franchise model of business is especially attractive to franchisors because it does permit the franchisor to design a sales contract in which the terms of sale will dictate and ensure that he deal with his franchisees on a one-on-one basis when problems arise throughout the long term of the contractual relationship. Obviously, the intent of the routine franchise agreement, the contract of sale, is to discourage any collective bargaining by a well organized and united franchise association.


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