Ontario Franchise Law establishment: It started with Tony Martin, John Sotos and me.

March 5, 2016

But like all deceptions, the betrayal starts with one and then mushrooms to thousands. Two lure in several others.

justice

Justizia, by Luca Giordano

December 20, 2000 was the last time I met with Sotos and Martin. Sotos told a very interesting story:

It was his experience that those engage on the “shadow side” of large scale franchise disputes, suffer severe health consequences.

It was fatal for the dad in Ontario’s first franchise class action case, Bulk Barn. It was fatal for a friend called Julie.

Tony‘s not doing so well.

I don’t know how well John, David Sterns, Michael Webster, Jay Harris, Peter Webber, Andrei Oudovikine, Alexendre Oudovikine, Jonathan Lisus, Jeff Lefler and Franck Panczyk and their families are doing.

***

Justice (virtue)

Justice is one of the four cardinal virtues in classical European philosophy and Roman Catholicism. It is the moderation or mean between selfishness and selflessness – between having more and having less than one’s fair share.

Justice is closely related, in Christianity, to the practice of Charity (virtue) because it regulates the relationships with others. It is a cardinal virtue, which is to say “pivotal” because it regulates all such relationships, and is sometimes deemed the most important of the cardinal virtues.

 


3G Capital poises for accelerated growth in U.S. Tim Hortons by closing stores?

November 23, 2015

Number of closed stores and terminated Canadian franchisees is both unknown and unknowable because of lapdog disclosure rules.

20151123 Tim Hortons

Tim Hortons confirmed that stores across Maine and New York closed on Friday. RENE JOHNSTON / TORONTO STAR FILE PHOTO

An interesting article in Canada’s largest daily newspaper, Tim Hortons closes locations in New York, Maine, (subheadline:
Coffee chain refuses to say if it has closed any Canadian outlets. It has reportedly closed more than 20 stores in the U.S.):

Tim Hortons has closed down many locations across New York and Maine, only a few weeks after reporting a profit of $49.6 million (U.S.).

The coffee chain would not confirm if any Canadian outlets had been closed or how many U.S. stores shut.

And also in a press release:

“As we build the foundation for accelerated growth in the U.S., we have decided to close some restaurants in New York and Maine.

Comment on article by reader “Relax”: Apparently, Tim Hortons has figured it out. The best way to “accelerate growth” in the US is to start by closing stores.

Canadian Franchise Industry Much More Secretive: Franchisors in the United States are required to report the number of stores and franchisees closed, terminated, etc. each year. There is even public access to their Franchise Disclosure Documents (see California’s search template: Tim Hortons USA Inc). In Canada, provincial ministries do not require franchisors to publish this data. So sad for investors or journalists or the captured franchisees’ billions of investment $.

Additional coverage:

Franchisors have traditionally sent signals to their franchisees on how they would be treated if they’re not seen to be “on the team”. Normally, the most vocal are out first.

Word from Canada is that the franchisees has it that their stores have never been more profitable.

The real prize is on the (surviving but fewer) CDN franchisees’ income statements.

 


It will be very tempting for Tim Hortons male franchisees to follow false franchise bar prophets.

January 30, 2015

Who you decide to trust is not just a matter of economic loss.

Eve

Tim Hortons franchisees are under unbelievable pressure to do something.

Brand name franchise lawyers:(95% of their long-term business is from franchisors)

Watch out for false prophets. They come to you in sheep’s clothing, but inwardly they are ferocious wolves. By their fruit you will recognize them. Do people pick grapes from thorn bushes, or figs from thistles? Likewise every good tree bears good fruit, but a bad tree bears bad fruit. A good tree cannot bear bad fruit, and a bad tree cannot bear good fruit. Every tree that does not bear good fruit is cut down and thrown into the fire. Thus, by their fruit you will recognize them. Matthew 7:15–23

False prophet: defintion

I encourage all franchisees to talk to their spouses because (after all) she’s responsible for 50% of your future decisions, good and bad.

The burnt hand tends to teach well.


How can 3G Capital guarantee “no staff cuts” at the 3,600 CDN Tim Hortons franchisee-owned stores?

January 29, 2015

Industry Canada may not understand franchising: who actually employs these 96,000 Canadians.

Tim Hortons Youve been fired

Theo Moudakis / Toronto Star

But how can 3G Capital (buyers of U.S. Burger King in 2010) offer any assurances that the 1,100 or so CDN franchisees won’t be forced to lay off their staff once their gross margins and equity are “right-sized?

Is 3G Capital:

  1. incompetent,
  2. willfully misrepresenting things to Canadians and our duly elected politicians, or
  3. admitting that they are “joint employers” (with the franchisees) of those 96,000 franchisee employees?

Note recent charges against McDonald’s by the U.S. National Labor Relations Board: NLRB Charges McDonald’s as Joint Employer with Franchisees.

The National Labor Relations Board filed 13 cases against McDonald’s Corp. (NYSE:MCD) and its franchisees this month, alleging they violated the rights of employees, who worked at McDonald’s restaurants at various locations across the country.

The government agency’s complaints state that McDonald’s and its restaurant owners made statements and took actions against fast food workers for engaging in activities that aimed to improve their wages and working conditions. They accuse the parties of interfering with nationwide protests organized by unions over the past two years over their terms and conditions of employment.

Protect franchisees and they will protect their staff.

  1. Are Canadian federal officials either 1. or 2. (see above)?
  2. Is organized labour and others who wants a $15 minimum wage for the 1,140,000 franchisee-employeed staff in Canada?
  3. How about Industry Canada who risks public taxes while guaranteeing $1.4 billion of franchisee business loans (1999 to 2007).

Which is the most powerful and misunderstood provision of the most-feared franchise law in the world?

January 13, 2015

Section 4, Right to Associate, Ontario, Canada’s Arthur Wishart Act (Franchise Disclosure) 2000.

Right to Associate

As sure as water flows downhill, this will lead to franchisee-led, not lawyer-thwarted:

  1. trademark-specific WordPress weblog (then a Wikidot.com wiki),
  2. small groups of franchisees commissioning research (sharing cost information),
  3. non-lawyer franchise expert coach consulting,
  4. an independent franchisee association (no franchise bar involvement),
  5. shared services, supply co-operative(s),
  6. non-franchise bar case preparation, and
  7. equity and gross margin protection.

The Right to Associate provision (the de facto CDN standard and what all franchisees in the world aspire to for justice) is one last conceptual obstacle preventing franchisees from taking their appropriate seat at the adult’s table.

Proof?: after 14-15 years, the CDN franchise bar has filtered each attempt to plead Right to Associate (trial and appeal), thereby, defeating the ON justices from activating its potential.

The ON Superior Court of Justice will make the link to Section 2 of the Canadian Charter of Rights and Freedoms.

ON Surperior Court of Justice

Cross-posted on the Canadian Alliance of Franchise Operators website (CDNafo.ca)


Bankers cheat 2 times more than politicians

August 18, 2012

Canadians think of themselves as being more honest than any other nation.

But they’re not.

Every nation cheats the same.


There was one glorious time when the truth about Big Franchising was revealed and recorded.

July 25, 2012

QueensParkFour days in 2000.

March 6, 7, 8 and 9.

Public hearings into the franchise relationship. Four days of traveling public hearings: Toronto, Sault Ste. Marie, Ottawa and London. Ontario, Canada. Traveling public hearing: extremely rare, if not unheard of, under the Mike Harris government.

Approved by the former Ontario  Minister Robert Runciman over a beer with Tony Martin at the Queen’s Park members’ bar. Two men who share a love of democracy as expressed in the Legislative Assembly of Ontario.

I had the tremendous honour of traveling throughout Ontario as before these life stories were twisted into the Arthur Wishart Act (Franchise Disclosure), 2000. I seemed to have made an impression on the politicians.

Of the current MPPs (107), I know 29 of them. One Minister since I was 17 years old. 45 minutes from my house to their House.

It happened once.

It can happen again.

— The Legislative Assembly of Ontario, looking north to the main doors, University Avenue, Toronto Ontario


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