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


Thought control, the digital media and empires

October 20, 2010

New media is often captured by totalitarian regimes.

PhD, one-time, legally appointed Chancellor Goebbels and Leni Riefenstahl used motion pictures.

Now others use the internet.

I responded recently to a series of posts from Richard Solomon and an anonymous poster called FuwaFuwaUsagi. Fuwa’s motto is, it seems “Never underestimate the power of stupid people in large numbers.”

http://en.wikipedia.org/wiki/File:Bundesarchiv_Bild_183-R99035,_Adolf_Hitler_und_Leni_Riefenstahl.jpg

Near the end, it’s just pathetic.


Ch-ch-ch-changes (turn and face the strain) Ch-ch-changes

August 23, 2010

Franchising would be an okay investment…

IF its business model risk profile didn’t change (ie. turns ugly) over the course of the contract.

But it does. Like a lot.

Don’t gamble with your life savings by buying a car with no brakes.

Changes, David Bowie form the 1971 album Hunky Dory.

Still don’t know what I was waiting for
And my time was running wild
A million dead-end streets
Every time I thought I’d got it made
It seemed the taste was not so sweet
So I turned myself to face me
But I’ve never caught a glimpse
Of how the others must see the faker
I’m much too fast to take that test

Ch-ch-ch-ch-Changes
(Turn and face the strain)
Ch-ch-Changes
Don’t want to be a richer man
Ch-ch-ch-ch-Changes
(Turn and face the strain)
Ch-ch-Changes
Just gonna have to be a different man
Time may change me
But I can’t trace time

I watch the ripples change their size
But never leave the stream
Of warm impermanence and
So the days float through my eyes
But still the days seem the same
And these children that you spit on
As they try to change their worlds
Are immune to your consultations
They’re quite aware of what they’re going through

Ch-ch-ch-ch-Changes
(Turn and face the strain)
Ch-ch-Changes
Don’t tell t hem to grow up and out of it
Ch-ch-ch-ch-Changes
(Turn and face the strain)
Ch-ch-Changes
Where’s your shame
You’ve left us up to our necks in it
Time may change me
But you can’t trace time

Strange fascination, fascinating me
Changes are taking the pace I’m going through

Ch-ch-ch-ch-Changes
(Turn and face the strain)
Ch-ch-Changes
Oh, look out you rock ‘n rollers
Ch-ch-ch-ch-Changes
(Turn and face the strain)
Ch-ch-Changes
Pretty soon you’re gonna get a little older
Time may change me
But I can’t trace time
I said that time may change me
But I can’t trace time


No fault Franchising: Business models change all the time

August 6, 2010

You do 100% accurate due diligence before you signed your franchise agreement. The model checked out, aces.Three years in, however, the model changed making your investment sour.

Question

Whose fault is it?:

  1. franchisor — even though they clearly stated in the agreement that it was their model and they could change it anytime, for any reason, without anyone’s consideration (let alone yours),
  2. franchise lawyer — their duty is to protect their client (95% of the time = franchisors),
  3. sales agent — who said there was some “good faith” law that protected you (specific provisions +99.9% trumps wishy-washy ones),
  4. the regulator — tend to be influenced by those that can wield influence,
  5. your parents — don’t buy junior a franchise (suicide is the third leading cause of death for young people ages 15 to 24),
  6. your wife — you didn’t let her sign any paperwork (did you?), or
  7. yourself.

Answer: Nobody.

It’s in the nature of modern franchising. You simply misunderstood and bought into a persuasive and sophisticated marketing message.

You fell for the old cock and bull story.


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