Franchisor accounting systems are quite a game

What is the primary purpose of an impossibly complex franchisee accounting system?What is the primary purpose of an impossibly complex franchisee accounting system?

It hides:

  1. kickbacks,
  2. vendor rebates,
  3. shelving allowances,
  4. co-op marketing $,
  5. inside money,
  6. rounding self-interest,
  7. defaults to franchisor’s self-interest,
  8. makes litigation next-to-impossible, and
  9. 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

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One Response to Franchisor accounting systems are quite a game

  1. Merta Astun says:

    Best reading for a while

    Keep up …

    Merta

    Like

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