When a franchise crashes, it can devastate some families for decades.
Citizens own their own laws, don’t they? Not the experts.
Humans constantly evaluate risks in their environment. Very high evolutionary weight is given to this skill but in complex post-industrial financial decisions, more and more people are understanding just how irrational human decision making is. Our laws should take into account human factors.
People (and this is empirically proven) compensate for perceived risks:
- drivers with anti-lock brakes/air bags are more reckless (speed, distance, reaction time) than others,
- car drivers follow helmeted cyclists closer than non-helmeted cyclists,
- the greater the safety improvements in skydiving, the divers take on more risk,
- football players have much more serious injuries than rugby players…
Franchise disclosure laws simply shift (not reduce) net risks for a population while giving a dangerous false sense of authority to a decaying industry. The judges know this in all jurisdictions because they have had their own franchisee clients by the time they get appointed to the bench. Lawmakers have a much more difficult time resisting policy tsunamis.