Serruya family buys Kahala, Cold Stone and others

August 23, 2013

Multi-tradename franchisors often are (how should I say this) the least sensitive to franchisees’ investment concerns,

BMM Cold stone

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:

10. Sniktaw
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.
11. 911c2
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.


Quesada Mexican Grill: just another over-hyped franchise pump-and-dump development deal?

April 28, 2013

Let me get this straight: based on 3 years of franchising experience, they’re going to go from 15 to 300 in 5 years? [20 times the size]

Quesada_logo

Franchisors have never been shy about risking other-peoples’-money.

Quesada President Tom O’Neill in QSR magazine called Canadian Mexican Brand Plans to Hit 300 Units in 5 Years:

The company expects to open about 300 franchised restaurants in the next five years. “Our game plan,” says O’Neill, “is to double in
 size every 12 months.”

Double every 12 months? Really? Anybody’s business doubling for 2 years in a row nowadays? And the risk to every franchisee when the franchisor spins out of control?

  • Brutal…all equity gone.

This couldn’t be another pump-and-dump deal that leaves the area developers and their franchisees holding the bag just like Krispy Kreme…Could it? See Burnt to a Crisp on WikiFranchise.org.

Canada Franchise AssociationListing

Quesada Franchising of Canada Corp.
Eat More Burritos
Franchise Fee: $20K
Startup Capital Required: $60K-$75K
Investment Required: $152K-$242K
Available Territories: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia, Prince Edward Island
Training: 2 weeks
Franchise Units Canada: 11
Corporate Units Canada: 4
In Business Since: 2004
Franchising Since: 2010
CFA Member Since: 2010

Source


Being a franchisee is like…

April 15, 2011

…living in a blender.

Tolerable as long as you don’t think of those who are closer to blade.

Don’t worry: give it time.

[Art Data Bank]


Franchising: Trap for the Trusting by Harold Brown

April 8, 2011

Written in 1969; franchisor opportunism has become worse.

Inside cover:

This book is designed to inform the public and the legal profession of the egregious imbalance that exists in the franchise relationship and to suggest various forms of redress by means of litigation and legislation. By discussing (and printing) the contents of the usually secret franchising contract in complete detail, the author makes the reader thoroughly familiar with such inimical and routine restrictions as the covenant not to compete, the informer clause, supplier kickbacks, the “bad boy” clause, the “yellow  dog” clause, arbitrary termination, the suspension clause, and many other forms of contractual coercion, both stated and implied.

For too long the law has permitted franchisors to invoke “quality control” and “sanctity of contract” to ruthlessly enforce their unjust agreements…

Until definitive franchising legislation is passed, FRANCHISING: TRAP FOR THE TRUSTING can show the reader how to avoid the pitfalls of the standard franchising agreements or provide his attorney with a blueprint for seeking relief through existing statutes and case law. Arguments and citations from the franchise related fields of fraud, equity, securities regulation, Anti-trust, and labor relations are included.

Still Unsafe at any Brand.


Wealth, in even the most improbable cases, manages to convey the aspect of intelligence.

January 23, 2011

The privileged have regularly invited their own destruction with their greed.

[JKG: tallest, farthest left]

The greater the wealth, the thicker will be the dirt.

The economic system operates effectively only within firm rules of behavior. The first is common honesty – truth must be conveyed as essential information to investors, the public at large and, as already specified, to consumers. In the field of finance, however, it is especially likely that, misconduct being remunerative and damaging, this will not occur. Regulation must, accordingly, prevent false or misleading reporting as to business performance and earnings as to investment prospects. And there are numerous other designs for bilking the minimally informed or mentally innocent. p. 79

The Good Society, John Kenneth Galbraith, 1996


The real reasons for failure are made to fit the prevailing American Dream myth

December 31, 2010

To those with no franchise experience, almost any pretense of why your franchise failed.

Whether that bears any semblance to reality, Who cares?

[Caught In A Hustle]


ActionCoach Canada: Someone get me an application.

November 8, 2010

I promised my bankruptcy trustee no more franchises but…

ActionCoach belongs to the Canadian Franchise Association, CFA. As a member, they are bound by the CFA’s Ombudsman program and their Code of Ethics. Every franchisee is automatically a member of the CFA if its franchisor is.

ActionCOACH Canada
The World’s Number 1 Business Coaching Firm
#202, 12906 – 54 Street
Edmonton, AB T5A 5A8, Canada
Phone: (888) 478-0790 / (780) 478-0790
Fax: 1-866-243-1654
Web: http://www.actioncoachcanada.info
Email: gregkopchuk@actioncoach.com
Contact: Greg Kopchuk, Master Licensee

Do you want to improve your personal lifestyle, income, wealth, equity and eliminate your debt? Do you want to be able to help others? Do you want balance in your life so you can spend more time with your family? Do you want to be part of an organization that offers mentorship and guidance to success? An ActionCOACH franchise might be the right choice for you. With the license you are granted, you’ll receive the tools, support, and business systems that work in any business, anywhere, any time.

Franchise Units Canada: 40 USA: 325 Other: 554
Corporate Units USA: 7 Other: 1
In Business Since: 1993
Franchising Since: 1998
Franchise Fee: $75K
Investment Required: $100K
Training: $25-47K 10-45 Day Program
Available Territories: All of Canada, US, Int
CFA Member Since: 2000


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