Canadian franchise bankers have learned a great deal about opportunism (self-interest with deceit) from their franchise bar friends.

November 30, 2017

Canadian franchise bankers

Franchising Opportunism

Paper to Industry Canada

EXECUTIVE SUMMARY

1. Modern franchising creates opportunism by separating ownership from control.

2. Economic theory indicates fraud is likely to occur with credence goods or services. Franchise industry system owners, lenders, consultants and lawyers provide credence services.

3. Franchisors sell franchises not only to the public but to their industry peers. A sophisticated fraud model has been developed. Franchisors licence their franchisees’ opportunism to financial institutions and consultants.

4. Fraud requires a tolerant environment.

5. Malfeasance is minimized with a free flow of information regarding material investment risks. The Canadian franchise industry is characterized by high levels of information flow on the all levels with the dramatic exception of the small business investor.

6. The most accurate, independent reputation data is held by those with the greatest barriers of communication.

7. There is sufficient internal and external evidence to warrant halting franchised loan claims and to notify the appropriate federal and provincial agencies for evaluation.

8. Further research is warranted.

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Study A Civil Action, 1998: Don’t be a patsy franchisee leader in a Big Tort action.

November 20, 2017

It stopped being about justice the moment the writ was dropped.

The truth is in the bottom of a bottomless pit.

“I don’t have to call anyone, do you?”


It’s important for Canada’s two elite class action franchise lawfirms to give the appearance of a fair fight.

November 15, 2017

Behind the scenes, the amount the franchisor will be paying out to the lawyers has already been agreed to.

Why risk paying out +$1B when $25 million to each law firm (> 0.5%) will trip up the lawsuits?

It’ll never get to trial anyway.


Which shareholder enables the franchisee class-action game?

June 29, 2017

The informal franchisee leaders. The organizers. The “white knights”.

When the class-action fraud sausage explodes, You can’t really blame the lawyers for pandering to your lack of wholeness, wisdom, and confidence.

Can you?


Who profits when a $500-million Canadian class-action franchise lawsuit happens?

June 21, 2017

The least likely are individual franchisees.

That may or may not happen especially when 98% of all lawsuits never make it to trial and withstand an appeal.

The negotiations are held between the 2 lawyers. Franchisees are decision takers.

Parties:

  • Franchisor (defendent) – the only payer, repeat player, credence good monopolists, (happier to pay 2 law firms a lot rather than a little to hundreds of franchisees)
  • Franchisor’s Specialized Law firm – only one in Canada, repeat player, expert credence good provider, member of franchisor association
  • Franchisees (plaintiff) – one time player, only non-credence good player, unskilled but unaware
  • Franchisee’s Specialized Law firmonly one in Canada, repeat player, expert credence good provider, member of franchisor association

Both CDN law firms (one for the franchisor, one for the franchisee) at this level are businesspeople, first and foremost.

The two law firms act as rent seeking coercive monopolists.


Vigorous provincial government relations are invaluable in influencing Tim Hortons Brazilian-based vulture capitalists.

June 8, 2017

Franchisees need to speak out to their local MPPs (member of provincial parliament).

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Queen’s Park, Toronto, Canada

The independent franchisee association should make a legislative “wishlist” a priority.

Nothing, nothing makes a franchisor and his allies (Canadian Franchise Association, CFA et al) stand up and take notice.

Anyone who says talking to politicians is a waste of time, is working full-time for 3G, the CFA, its 1,199 other franchisors and their supporters: banks, legal service providers.

Start by suggesting the Ontario government reverse the onus on good faith in the Arthur Wishart Act.

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Est. 1998

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Mike Colle, MPP Eglinton Lawrence, Susan Kezios, President, American Franchisee Assocation, AFA and Les Stewart, Canadian Alliance of Franchise Operators, CAFO, Wishart Act hearings, 2000.

Les’s expert witness testimony.

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John Sotos, Sotos LLP and Susan Kezios, AFA, Wishart Act hearings, 2000

John’s expert witness testimony. Susan’s expert witness testimony.

Tony Martin MPP Sault Ste. Marie and Dr. Gillian K. Hadfield, University of Toronto, Toronto, Canada, 2000.

Dr. Hadfield’s expert witness testimony.

Three MPPs get together to try to make franchise fraud a criminal offence, Second Reading, 2010.

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Les Stewart, ON Premier Kathleen Wynne and Don Morgan, 2015.

Q: Why should any public official help your family when (it appears) you don’t give two hoots about the other +70,000 franchisee families?


Who has profited most handsomely from the passage of the Ontario Arthur Wishart (Frachise Disclosure) Act, 2000?

March 27, 2017

The mega group, elite class action and Tier 2 franchise bar practioneers.

Notwithstanding a very receptive Superior Court, almost no mom-and-pop franchisees.

That’s precisely why no attorney pleads right to associate issues.

The franchise bar profits more from filtering and defeating frachisee claims.


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