Free riding on the authority of the state

The notion that people need to believe in and trust in their institutions is not a naive, child-like or stupid idea. It’s an evolutionary imperative because humans are social beings.

Our survival depends on a reasonable expectation of the basic trustworthiness of the officers and offices in our instituations.

A modern complex post-industrial knowledge economy requires a high-trust environment. Fairness of opportunity is the business governments are in: not passing laws that enable the the creation and cover-up of consumer swindles.

A country, a provincial parliament or a police force are not a brand.

Franchising as a bully arena is most readily seen when they start to push around people we elect to represent us.

See this coat of arms?

Canada stood for something at one time. People sacrificed a lot (continue to die for, in fact) a principle, not to enable federally regulated financial institutions to drive the lending getaway car.

See this one?

The Legislative Assembly of Ontario: hear the other side. It’s designed to remind us of something. We as citizens are diminished when its taken 40 years to prove that powerful commercial interests can deny the need for, then flip-flop in 2000 when they need a sales boost and then flop-flip(?) saying that any more pre-sale disclosure would “give a false sense of security” for investigating future franchisees.

Oh, please.

And this one…

When fraud coppers have to continue to turn away franchise victims (wives of some of their own “brothers”, even), it reduces the trust we have in the value of all police enforcement activities.

When the legitimate authority of the state is debased, we are all diminished.

2 Responses to Free riding on the authority of the state

  1. Carol Cross says:

    When I first investigated franchising, it hurt me when I found out that the my government cooperated with the special interests in franchising to deny full disclosure of risk to new buyers of franchises. I didn’t want to believe that the FTC Rule was just an artifice to protect franchisors, in the sales process, from charges of fraudulent inducemnent to contract.

    Obviously, however, the FTC Disclosure Rule is an artifice that works to obscue the risk and provide deniability to the regulators and The Congress in order to promote franchising activity in American communities, Franchisees don’t alll fail at the same time and the churning and turning within systems is compounded and is the element that has made franchising so visible and durable in world economies.

    When all three branches of government cooperate to render some of their citizens to be franchise fools and dummies, the fools and the dummies don’t have a chance –especially in world recessions! The savings and their personal guarantees of Mom and Pop investors who are looking for a way to earn a living keep the franchisors standing –even in bad times!

    Let the Buyer Beware! Look in on and read hattp:// if you are a US Citizen interested in buying a franchise!


  2. Ray Borradale says:

    The institutional maintenance of franchising’s damage provides the greatest incentive not to invest in franchising. That might not have been the power plan and yet, as blatantly obvious as the terrible outcomes are it is business as usual for our institutionally sponsored franchise swindlers.

    If the judicial interpretation of franchising law considered the degree of consequence and foolish innocence then franchising would take on criminal proportions regularly.


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