August 23, 2013
Multi-tradename franchisors often are (how should I say this) the least sensitive to franchisees’ investment concerns,
A very good article on Blue MauMau by Janet Sparks, Kahala Acquired in Auction by Serruya Family:
TORONTO – The Serruya family today announced that they have acquired a controlling interest in Kahala Corp., owner of Cold Stone Creamery and many other franchised brands. The transaction was completed on Monday.
The Serruya family brings substantial experience in franchising to Kahala. They are planning for growth of Kahala brands in both international and North American markets.
The new franchisors seem to have to prove something to knowledgeable franchisee advocates.
Former Cold Stone franchisee Cecil Rolle, who has been engaged in litigation with the franchisor said, “I’m hoping the acquisition of Kahala Corp by the Serruya Family is a watershed moment for Cold Stone Creamery franchisee profitability and the harmonization of the franchisor to franchisee relationship, which has been as contentious as they come. The Serruya Family will have to prove to me they are serious about the concerns of the franchisees and their families. Rolle has been an advocate for current franchisees, assisting them in profitability and other issues.
Some of the comments about the buyers from a related Globe and Mail article are speak to all the franchisees might be in for:
Have to agree with the general thrust of the other posts here. These scumbags are right up there with Marc Tellier re ability to engineer massive shareholder value destruction whilst at the same time garnering obscene riches for themselves.
i also got creamed owning their stock. Also, rode up the swisher stock that coolbrands turned into. That stock was jacked up to $10 now its at $1 again!! I will run away from anything that they are selling. No more stocks from them. won’t even try yogurtys since they r involved. Are they still doiong business deals with Jack Banqueseus aka Jack Banks who had four public shell stocks?
this post is all in my humble opinion
Franchisees have much, much less protection against opportunism than do owners of publicly traded stock.
November 9, 2011
Multiply your efforts by using the laws of our society intelligently.
Accelerating Relationship Leverage
A private for-profit corporation (anonymous franchisee shareholders) AND a 100% locked-down, franchise law-specific indexed document database (wiki) pivoting WITH a highly public attorneyless franchise network.
- solves the information and resource imbalance endemic in franchising,
- takes less than 3.0 per cent of franchisees needed to start as shareholders,
- valuation of for-profit calculated annually (franchisees will clamour for 0.1% share in 5 years),
- allows innovators and early adopters to carry at first,
- focuses attention on a single, credible voice for franchisees that is respected because it is in the franchisor’s self-interest to do so,
- shareholder anonymity balanced with managerial control (no one shareholder can highjack the agenda),
- accesses the most cautious investors (overcomes stigma of betrayals and organizational collapse),
- retains franchisee “equity” (for-profit franchisee corp. directly aims to support and increase re-sale value),
- prevents much of future franchisor opportunism: self-interest with deceit (franchisee cost avoidance),
- voluntarily shifts capital from franchisee’s “equity” (temporary, illusory) to group equity (real),
- more able to reform system rather than just legally fight and be forced to leave,
- facilitates: vendor programs, franchisee self-borrowing, stock purchase PADs, training, life:work balance, buying/selling franchises,
- each franchisee is issued a membership in the attorneyless franchise network and a share in the for-profit corporation (one share),
- enables former franchisees to invest (if desired),
- strategically positioned to defend against private equity vultures,
- builds trust with shareholder group (external investments, reducing risks, development),
- accesses and retains expertise that dues-paying organizations cannot afford, and
- capitalizes on the fact that CDN, ON Court decisions have shifted economics on dispute resolution in franchisees’ favour.
- takes time, need for long-term perspective,
- 24 franchisee shareholders to start “risking” 2% of their cash they’ve made in the last 10 years,
- requires patient shareholders (no interest payable initially).
April 28, 2011
There was no map or rule book in testing the limits of the industry.
By nature, these were all unreasonable actions from the conventional viewpoint.
To me, they were just taking one step ahead of the other.
- national franchisee association (Canadian Alliance of Franchise Operators),
- defined Big Franchising,
- manual archive of published articles,
- investigate government guaranteed loans (predatory franchise lending),
- multi-million dollar one party lawsuit,
- group lawsuit (Grand & Toy, Tupperware),
- request made to for support from Ontario government (letter/proposal: Information Sharing Project),
- class action,
- digital archive of documents (WikiFranchise),
- national attorneyless franchisee association (National Bread Network),
- franchisee-created trademark system wiki,
- a franchisee-funded private equity structure (The Grange Fund).
April 25, 2011
Franchisees need to invest in a private capital fund.
Not just hang out wasting time.
September 20, 2010
Hatched in the dark so they can survive sunlight.
Heads-up to franchisee vegans when the PE guys show up for dinner (ie. your family’s equity):
get some MBA-type advice because your franchisor is was a pussy cat in comparison.
Thanks to ILoveCharts