How does Mark Knofler know PRECISELY how franchising works?

February 25, 2020

Seen as the archetypal American Dream…once you wake up.

Ray Kroc and Fred Turner created the crocodile business model.

Boom, Like That, Mark Knopfler

I’m going to San Bernardino ring-a-ding-ding
Milkshake mixers that’s my thing now
These guys bought a heap of my stuff
And I gotta see a good thing sure enough now

Oh my name is not Crock, that’s Kroc with a K
Like crocodile but not spelled that way now
It’s dog eat dog, rat eat rat
Kroc style… Boom! like that

Folks line up all down the street
Now I am seeing this girl devour her meat now
And then I get it Wham! as clear as day
My pulse begins to hammer then I hear a voice say:

These boys have got this down ought to be one of these in every town
These boys have got the touch It’s clean as a whistle and it don’t cost much
Wham! Bam! You don’t wait long, shake, fries, patty you’re gone
How about that friendly name, heck, every little thing ought to stay the same

Or my name is not Crock, that’s Kroc with a K
Like crocodile but not spelled that way now
It’s dog eat dog, rat eat rat
Dog eat dog, rat eat rat now
Oh it’s dog eat dog, rat eat rat
Kroc style… Boom! like that

 

 


Franchise gag orders are CRITICAL to maintaining abusive commercial relationships.

January 25, 2020

Between the franchisee and family versus the franchisor’s and franchisee’s lawyer, franchise banker (especially predatory lending), landlords, and suppliers.

Non-disc;losure contracts make a mockery of pre-sale due diligence by prospective franchisees.

Creates inevitable fraud by exiting franchisee.

Disclosure: I’ve never signed one.


Franchisors use gag orders to coverup their team’s abuse.

January 25, 2020

And, importantly, these non-disclosure contracts absolves the sins of the lawyers (franchisee and franchisor), franchise banker, supplier, and landlord.

The abuse from all the parties requires secrecy.



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]


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