Opportunism during wartime is a very old idea

Franchisors controlling the price of needed supplies is an evil.

This central fact is true no matter if the public or franchisees understand they’re being gouged. Similarly, a state of war can certainly exist before it has been declared.

Every franchisee is at war with their franchisor over tied buying provisions, irrespective of the profits that each may or may not make.

Winsor McCay 1867 – 1934

[Golden Age Comic Book Stories]

4 Responses to Opportunism during wartime is a very old idea

  1. Ray Borradale says:

    Where there is an obligation for all parties to a franchise agreement to operate in good faith there is not a solution for the underfunded.

    Where there is effective access to affordable, speedy dispute resolution there is no solution without arming a dispute resolution authority with effective law incorporating an explicit obligation to good faith dealings.

    The essential tool for franchisee churning is the ability to abuse operations manuals to create franchisor profit streams that destroy franchisees leaving a windfall for the churner and its lawyers.


  2. Frank says:

    I agree with you Ray as I see it being done today in the franchise system I’m in today. The franchisor claims that this operations manual was approved by franchisees who assisted in the manual. Out of 250 franchisees 4 franchisees were invovled and 2 agreed and 2 dissagreed, Now I as a franchisee is paying the price on the spin the Franchisor is doing because of what those 2 franchisees have done by agreeing to the operations manual..


  3. Les Stewart says:

    Ray and Frank,

    In Ontario, all relationships are not just governed under good faith/fair dealings but from a perspective of having to be “commercially reasonable” as well.

    Part of commercial reasonableness is to have not only consent, but INFORMED consent, when an important change is made to the relationship.

    The most successful franchisee groups over the last 30 years are constantly willing to challenge their franchisor in their interpreations AT THE POINT of a litigation GUN. Canadian Tire franchisees are a great example.

    That that fall asleep or look for “big daddy” (government, lap dog associations, regulators) to ease their pain, are left with a “road kill expression” like the majority of General Motors in Canada who were terminated in the last year.

    Franchisors are blind to arguments not based in power (as all mature businesspeople are, btw).

    “Talk therapy” is only good in a therapeutic relationship and franchising is assuredly not one of these.



  4. Ray Borradale says:

    Our FCA has rejected even ‘good faith’ but as we head toward the end of round 1 at least the FCA has introduced some humour into the debate.


    Did you know there was no sysemic abuse of contractual power in franchising in Australia.

    Apparently I’ve been duped by at least 1,000 franchisees. My excuse is that they were mostly all broke and has similar stories regarding the practices they were making up. And besides many of the same people duped 3 franchising inquiries in 2 years.


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