- vendor rebates,
- shelving allowances,
- co-op marketing $,
- inside money,
- rounding self-interest,
- defaults to franchisor’s self-interest,
- makes litigation next-to-impossible, and
- enables intra-firm corruption, incompetence, fraud and payola.
It is designed to deceive; to make very profitable activity to appear marginal at-best.
To make franchisees:
- happy/asleep with pennies when dollars are being funneled through them, and
- smile/give-up/quit/burn-out/revolt when their sales rise by more than inflation (while their franchisor’s jump by 20%).
Franchisees in are the least-knowledgeable of the 30 different programs of kickbacks, shelf allowances and inside money details. The Ontario grocery industry are masters at this game.
But they’re learning.
— see Three-Card Monte