Fifty per cent (50%) of franchisees who lost their life savings to common industry practices are ready to spin the wheel a second time.

November 9, 2018

Predatory franchising and the franchise bar rely on you misunderstandding the core reason for your economic loss.

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It’s not the brand that will save you a 2nd time.

Learn the real reasons behind franchise fraud.

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Tim Hortons franchisor slammed with 2nd class action: now $500+$850-million for intimidation.

October 15, 2017

As I mentioned before, Right to Associate is the “game changer” for intelligent groups of Canadian  franchisees.

TORONTO, ONTARIO: MAY 17, 2017–TIM’S–Tim’s Horton’s location on Wyecroft Road in Oakville, Ontario, Wednesday May 17, 2017. [Photo Peter J. Thompson] [For Financial Post story by Hollie Shaw/Financial Post] //NATIONAL POST STAFF PHOTO

A good article by Hollie Shaw Tim Hortons franchisees sue corporate parent for $850M, alleging bullying, and

TORONTO — Tim Hortons franchisees who created an association to address their grievances with parent company Restaurant Brands International Inc. have filed an $850 million class action lawsuit against the company, the fast food operator is trying to intimidate its restaurant owners and force the franchisees who formed the group out of their restaurants.

And:

Les Stewart, an Ontario-based franchisee consultant, said the issuance of default notices to franchisees is highly unusual.

“This shows a predatory franchisor at its worst and it suggests (RBI) is taking a juvenile approach towards Canadian law,” he said. “It seems that they don’t understand the difference between a franchisee and an employee.”

It is not an easy legal road for master franchisors to take back healthy franchises, Stewart added.

“The Superior Courts understand how franchising works.”

I was pleasantly surprised to find out how discerning Superior Court Justices are about the David and Goliath, predatory  nature of franchising.


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?


How many of the 25,000 Syrian refugees will become cannon fodder to the franchise industry via government guaranteed liar loans?

December 29, 2015

Several thousand, I’d imagine.

20151229 Syria cannon fodder1

How? The moral hazard-riddled, Canada Small Business Financing Program.

Details:

 

 

 


7-Eleven (version Australia) and Big Franchising: conspiracies of fraud, extortion and theft.

September 2, 2015

I have defined Big Franchising and the role of industry enablers elsewhere.

7-Eleven Russ Withers

Click here to watch a 45 minute expose called 7-Eleven: The Price of Convenience.

Modern franchising runs identically, internationally, on all countries sharing a British Common law heritage.

The highest levels of national government known full-well for decades that wage theft is largely responsible for the extraordinary ROI that is achieved by franchisors such as Mr. Withers and Ms. Barlow.

Cross-posted on WikiFranchise.org.


How efficient and effective are the best franchisors in using their franchisees’ store investments?

February 25, 2015

Of the investment resources they attract, do they use them effectively or are they squandered?

Efficiency drucker

I chose some of the more “blue chip” of the U.S.-based systems and chased down their 2013 FDD (thank you the state of Wisconsin).

Preserving Franchisee Investments

Opportunism is when someone in a position of advantage, uses that position against another. In franchising, the situation that the franchisor controls the store’s sunk cost investment, can be exploited. A very good test of opportunism is: If the ownership of the assets were reversed, would the alleged “opportunist” likely change their decision?

Total Added Lost

While the 5 systems grew by 4,342 new stores (adding +$6-billion to franchisors’ coffers), there was also a loss of 1,738 stores or $2.5-billion of franchisee store investment that left the industry.

How goodHow “sticky” are franchisee investments in these systems? On average for every $1.00 of new franchisee that enters the market 42.2% was lost from 2010 to 2013.

Distance

 

Measured from the best practice level of Dunkin’ Donuts, there is some very large variation in these systems as they purport to take care of “other people’s money”.

leaky_bucket

Losing over 40% of the invested capital in 4 years? It seems the franchise industry is a bit of a leaky bucket.

  • Fairly apparent when the information is publicly available.

Kudos to the states of California, Wisconsin, Minnesota, Washington, and soon-to-be New York for their online repository of franchise disclosure documents.


Where will the real “fat” be trimmed at Tim Hortons: the head office or on franchisees’ bottom lines?

February 23, 2015

Tim Hortons1

The Globe and Mail reports on the new Tim Hortons president, Mr. Diaz Sese:

…Mr. Diaz Sese, who has law and business degrees and previously worked for French sporting goods retailer Decathlon, is moving from Singapore to Oakville, Ont., to take the Tim Hortons job, the company said last month.

Mr. Diaz Sese’s experience heading up Burger King’s expansion overseas fits in with Burger King’s goal of global expansion for Tim Hortons. The company says he tripled Burger King’s annual rate of restaurant growth in Asia.

Mr. Fisher said the new CEO, Mr. Schwartz, is part of a new breed of young leaders in the food service industry. “He’s got a reputation for cutting the fat and running lean operations.”

Yes, 3G Capital cut head office costs at Burger King in that takeover in 2010. But they had also had many corporate stores to sell for a quick cash hit.

This time, there are almost no Tim Hortons corporate stores to sell.

Just 3,800 franchised stores.


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