Franchising is usually an overwhelmingly distractive force.

November 9, 2018

The complexities grow when a lawyer is brought in to help.

Pattern recognition is best done by those who are not monopoly (1) law and (2) franchise bar practioners.

Throw away the powdered wig and those who cling to its antiquated value.


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.


The logic of business is coercion, monopoly, and the destruction of the weak, not ‘choice’ or universal affluence.

February 24, 2012

The leaders of the backlash may talk Christ, but they walk corporate.

Quotes:

Corruption is uniquely reprehensible in a democracy because it violates the system’s first principle, which we all learned back in the sunshiny days of elementary school: that the government exist to serve the public, not particular companies or individuals or even elected officials.

While earlier forms of conservatism emphasized fiscal sobriety, the backlash mobilizes voters with explosive social issues…which is then married to pro-business economics.

Grandstanding leaders never deliver, their fury mounts and mounts, and nevertheless they turn out every two years to return their right-wing heroes to office for a second, a third, a twentieth try. The trick never ages; the illusion never wears off. Vote to stop abortion; receive a rollback in capital gains taxes. Vote to make our country strong again; receive deindustrialization. Vote to screw those politically correct college professors; receive electricity deregulation. Vote to get government off our backs; receive conglomeration and monopoly everywhere from media to meatpacking. Vote to stand tall against terrorists; receive Social Security privatization. Vote to strike a blow against elitism; receive a social order in which wealth is more concentrated then ever before in our lifetimes, in which workers have been stripped of power and CEOs are rewarded in a manner beyond imagining.

— Thomas Frank 1965-


Want to Sue? Get an independent 2nd opinion

October 30, 2010

Wise in medicine. Critical in franchise law.

Independent consultants ensure their honesty from pre-trial evaluation (before 1st interview) to settlement.

Any CDN lawyer who can’t work with me is saying a lot about themselves.

Don’t trust in non-verifiable monopoly services.

TEST: How’s your one franchisor: one franchisee relationship working for you?


Innis of Canada and Empire and Communications

January 20, 2010

In the 1930s, 40s and 50s, international social science scholars called him simply:

Innis of Canada.

If you mattered, you knew him. And vice versa.

The real deal: perhaps Canada’s brightest guy in any classroom….ever.

“Harold Adams Innis was a man of vast learning whose mind ranged freely over wide areas of knowledge. He combined an unsurpassed gift for the striking phrase and the brilliant generalizations with a dedication to conscientious and original research.

Here he develops his theory that the history of empires is determined to a large extent by their means of communication. He examines the civilizations of Egypt, Babylon, Greece, Rome, and Europe (before and after the printing press) supporting his thesis with a rich array of historical, sociological, psychological, and anthropological data. Innis was one of the first to recognize the powerful influence technology exerted over culture, and he pioneered investigations into the effects of the communications media on society.

Empire and Communications, first published in 1950, was reissued in 1972 for a new generation of students, scholars, and all those interested in our society and its history. It incorporates the notes Innis made in his copy of the first edition – new ideas, quotations, and references – and it includes a foreword by Marshall McLuhan which assesses Innis’ contribution to our understanding of history.

HAROLD ADAMS INNIS was born in Ontario in 1894. He was educated at McMaster University and the University of Chicago, and joined the staff of the University of Toronto in 1920. At the time of his death in 1952 he was professor and head of the Department of Political Economy and Dean of the School of Graduate Studies. He had an international reputation equalled by no other Canadian scholar. Among his other books are The Bias of Communications, The Cod Fisheries, Essays in Canadian Economic History, The Fur Trade in Canada and A History of the Canadian Pacific Railway.”

University of Toronto Press

– back cover

The overwhelming pressure of mechanization evident in the newspaper and the magazine, has led to the creation of vast monopolies of communication. Their entrenched positions involve a continuous, systematic, ruthless destruction of elements of permanence essential to cultural activity.

Changing Concepts of Time (1952)


Social media breaks predatory franchising model

January 20, 2010

It also breaks the franchise bar’s monopoly. There is no place in pride for a courtroom.

Jerome Facher: [to law students] Now the single greatest liability a lawyer can have is pride.

Pride… Pride has lost more cases than lousy evidence, idiot witnesses and a hanging judge all put together.

There is absolutely no place in a courtroom for pride.

A Civil Action movie


Fiducia virorum in sinistra non in dextra est: A dead language for a dead legal specialty

September 7, 2009

ChimpanzeeAttorneyA McDonald’s USA CEO once described Micky D’s as a “real estate company with an interest in fast food”.

Being a lawyer within the franchise bar is 1 per cent law and 99% cash flow.

They are profit maximizing agents with marketing masks called: franchisor or franchisee. Technically, the franchise bar is a credence good group service providers which act in a coordinated manner to guard their monopoly on this self-defined subspecialty.

Litigation in franchising is a joke. A play.

A psychodrama for the newly aware. Graduate degree in post-modern amoral cynicism.

Franchisors pay 95% of all legal fees in the franchise industry.

The idea of a fighting chance (or fair dinkum as my AUS friends would say) is a farce.

farce n. 1 a a coarsely comic dramatic work based on ludicrously improbable events. b this branch of drama. 2 absurdly futile proceedings; pretense, mockery. [French, originally = stuffing, from Old French farsir from Latin, farcire, to stuff, used metaphorically of interludes, etc.] Oxford Canadian Dictionary

I watched up-close for 11 years these “titans of industry”.  They are very charming and knowledgeable and while good individuals by any measure, collectively are the greatest brake on any true industry reform because the cash flow:work combustion ratio is, in the short term, so rich.

They quote latin because their communication is meant to intimidate and close off understanding.

I don’t seem to have any commercial relationships with even the ones that insist that they are the Original White Knight franchisee lawyers. No shared clients. No emails. No free lunches. No fee sharing.

Not even Christmas cards anymore.

— Latin Proverb: Real men don’t attack


The Game of Franchising: Believe and Succeed

August 31, 2009

AndyKarufmanDid ya hear: Andy’s alive!

Yeah it’s true. Really.

Man on the moon and they still can’t commit to a reasonable expectation for cash flows?

Hey baby, Are we losing touch?

If you believe there’s nothing up my sleeve, then nothing is cool

Pseudos: from foolish stern to foolish bow.

Man on the Moon, R.E.M.

Mott the Hoople and the Game of Life. Yeah, yeah, yeah, yeah
Andy Kaufman in the wrestling match. Yeah, yeah, yeah, yeah
Monopoly, twenty one, checkers, and chess. Yeah, yeah, yeah, yeah
Mister Fred Blassie in a breakfast mess. Yeah, yeah, yeah, yeah
Let’s play Twister, let’s play Risk. Yeah, yeah, yeah, yeah
See you in heaven if you make the list. Yeah, yeah, yeah, yeah

Hey Andy, did you hear about this one? Tell me, are you locked in the punch?
Hey Andy, are you goofing on Elvis? Hey baby, are we losing touch?
If you believed they put a man on the moon, man on the moon
If you believe there’s nothing up my sleeve, then nothing is cool

Moses went walking with the staff of wood. Yeah, yeah, yeah, yeah
Newton got beaned by the apple good. Yeah, yeah, yeah, yeah
Egypt was troubled by the horrible asp. Yeah, yeah, yeah, yeah
Mister Charles Darwin had the gall to ask. Yeah, yeah, yeah, yeah

Hey Andy, did you hear about this one? Tell me, are you locked in the punch?
Hey Andy, are you goofing on Elvis? Hey baby, are you having fun?
If you believed they put a man on the moon, man on the moon
If you believe there’s nothing up my sleeve, then nothing is cool

Here’s a little agit for the never-believer. Yeah, yeah, yeah, yeah
Here’s a little ghost for the offering. Yeah, yeah, yeah, yeah
Here’s a truck stop instead of Saint Peter’s. Yeah, yeah, yeah, yeah
Mister Andy Kaufman’s gone wrestling (wrestling bears). Yeah, yeah, yeah, yeah

Hey Andy, did you hear about this one? Tell me, are you locked in the punch?
Hey Andy, are you goofing on Elvis? Hey baby, are we losing touch?
If you believed they put a man on the moon, man on the moon
If you believe there’s nothing up my sleeve, then nothing is cool

If you believed they put a man on the moon, man on the moon
If you believe there’s nothing up my sleeve, then nothing is cool
If you believed they put a man on the moon, man on the moon
If you believe there’s nothing up my sleeve, then nothing is cool
If you believed they put a man on the moon, man on the moon
If you believe there’s nothing up my sleeve, then nothing is cool


Franchising was an imperial Empire

August 17, 2009

When you think about it, franchising uses a lot of military terms: conquer markets, roll out regionally then nationally, blitz the consumer, attack markets. The very term marketing “brand”originated, of course, with heraldry and military regalia.

BritishEmpire

Franchising had operated as a type of self-governed nation state that has traditionally been held together by British common law principles.

They acted as if they were above the law.

This ability to exercise coercive power is over, however.

By 1920, see above, the sun never set on the British empire.

An empire is:

a State with politico-military dominion of populations who are culturally and ethnically distinct from the imperial (ruling) ethnic group and its culture. Wikipedia

The franchising elite is what I have defined as Big Franchising: product franchisors, key business-format franchisors (lapdog peak associations), and the franchise bar. If you doubt the transnational of modern franchising methodology, I direct your attention to the World Franchise Council.

Franchising is an imperial empire because it gains its strengths from “domains of knowledge, beliefs, values and, expertise”. Wikipedia These near-religious beliefs are found in full-blown vigour at the International Franchise Association’s continuous cliche-ridden press releases (see SmartBrief).

In most empires, there is a visible difference between the rulers and the ruled such as skin colour, language, education, nationality, ethnicity, etc. Not so in franchising.

The differentiating factor is between the investors’ ears.

Awareness that franchising is a game designed to re-distribute wealth (not create it) is what separates the haves from the have-nots. That franchising is often a debt-induced form of servitude is what the “innocents” have not learned yet.

The British empire held control by exerting a monopoly on sanctioned violence via their military, colonial administration, police and courts. This was possible through misrepresentations and control of information.

  • Franchising has done the same via the franchise bar’s jealously guarded monopoly on franchise legal work and access to justice in the civil court system.

Franchising as a coercion-based empire is over not because digital information can now be shared (internet). There are many digital house negroes actively trying resist the inevitable.

The empire has ended because credible and honest sharing is happening here, a few IndFA sites  and at WikiFranchise.org.

All empires pass away.


Rumblings in Canada’s grocery elite: Sobeys franchisees go independent

July 20, 2009

CFIGPeterKnipfelCFIGlogoWikiFranchise.org often adds depth and perspective to a current media franchise industry article.

Let’s take a look at the decades-old, but next to invisible, war of wills within Ontario’s grocery industry.

Last week, the Canadian Broadcasting Corporation reported that Buy-local push prompts Ontario grocers to go independent.

The Toronto Star ran a story last Saturday called Meat cleaves grocer’s tie to Sobeys: Ex-franchisee goes independent to gain right to sell beef, pork, poultry produced locally about 5 Sobeys franchisees taking themselves independent in southwestern Ontario.

That doesn’t seem to be much of a story unless you start looking into the background of the franchisees involved. The current press spin (a desire for more local suppliers) is certainly not the whole story.

In the CBC story a Mr. Peter Knipfel is quoted as saying:

“We actually put it [franchisor non-authorized products] on our shelves because we felt it very necessary for it to be in our community, and that prompted that we get away from the franchise system, because it was not making them [Sobeys] happy,” Knipfel says. “I didn’t want to ruffle any more feathers, so we just decided to part company.”

Grocery franchisors in Canada ruthlessly control what products can and cannot be purchased in their franchisees’ stores. Vendor programs (rebates, kickbacks, allowances) are a very important source of income for Big Grocery in Canada.

WikidFranchiseWhen you search WikiFranchise.org for “Peter Knipfel” you get the following article: CFIG Public Hearing Testimony. It appears that Knipfel was the Chairman of the Board of the Canadian Federation of Independent Grocers in 2000.

He is quoted as their Chairman in 2000 as saying:

…With the consolidation today in the grocery industry and the control that the franchisor has over the franchisee as far as pricing and our profitability is concerned, we need some protection for some fair dealing with our franchisor…

Sure enough, when you hop over to the CFIG’s website Knipfel’s photograph (see above) is prominently displayed as the Feature Story scroll.

That a former Chairman of the CFIG is one of the defecting franchisees is an indication that this story has much more to it than the simple formation a group called the Independent Hometown Grocers Co-Op.

I created WikiFranchise.org to help non-insiders understand the hidden meanings within franchising.


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