BP controls 6 international brands. Five are franchised.

June 19, 2010

They behave exactly as any sophisticated franchisor does in a crisis.

This video summarizes the last 50 days.

Would you share your family’s financial future with these “professionals”?

The more people say “Don’t boycott BP because the outlets are franchised” the more franchising becomes a laughingstock.

And everyone’s ability to sell-out diminishes just a little bit.

For every franchisee.


When high risk is disguised, franchise investors behave more recklessly because they are human beings

June 18, 2010

Perceived risk.

Big Franchising tries to minimize the public’s perceived risk of buying all franchises.

They:

  1. anchor their false legitimacy in “badges of authority” (FTC, banks, trade associations that claim to have a credible Code of Ethics or Ombuds program, justice system, toothless regulation and disclosure laws, government guaranteed loan programs, etc.),
  2. blame the fraud victims for their situation (ad hominem attacks),
  3. goes after military pensions by discounting worthless franchises (VetFran) and
  4. trot out the most blatant franchisee shills imaginable to hype foreign predatory systems.

Potential franchisees respond by buying higher risky offerings to satisfy their pre-existing tolerance for risks (see Target Risk: free online book by Gerald J. S. Wilde)

This is why franchising remains much, much riskier than independent businesses.

And getting riskier.

And without effective safeguards, franchising is Unsafe at any Brand.


Better an honourable death than a shameful life.

May 20, 2010

Franchising will collapse worldwide with oligarch funding from Russia.

Maybe Germany.

It is least likely to be initiated in North America.


Dickhead franchisees cost AU$55,000

May 8, 2010

Don’t be a franchisee.

Franchisors often lean very heavily on whom they perceive as disloyal (ie. capable of independent thought).

MOBILE phone retailer Allphones unfairly discriminated against some of its franchisees when it introduced a “no dickheads” policy in April 2004 to weed out underperforming businesses, the competition watchdog has claimed in the Federal Court.

The ACCC in Australia helps out by scolding Allphones by cutting a deal for, on average, $55,000 per franchisee.

“The company have basically forgone 12 months of profits, not their wages. How is that a punishment? The compensation will never be enough to cover the stress and the emotional roller-coaster that I and other franchisees went through.

“It was a terrible period of our life and many franchisees lost homes and marriages because of the stress during that time,” said one franchisee who wished to remain anonymous.

Just a cost of doing business.

See:


Are franchisees the new cigarette smokers?

April 24, 2010

At one time, smoking was seen to be cool.

Sophisticated.

Smokers were looked up to.

As it turns out, it was all lies and advertising.

Times change.


Is confidence in all franchising past the Tipping Point?

March 19, 2010

The CEO and president of the International Franchise Association, IFA announces his retirement.

And then their board of directors announces that it’s looking for his successor?

  • Hello…does anyone talk to each other on the premiere franchisor-dominated trade association any more? Nobody cared on the board of directors enough to do anything until Matt Shay went public?

Don over at Blue MauMau makes a great point in his Importance of succession planning.

It is a healthy sign when a board of directors is strong enough to carry out one of its most fundamental jobs, making sure there is a leadership successor.

In the hidden world of the board room, it is a rare outward sign of possible cronyism or a weak board when it has not carried out this function. A vacuum of leadership in a trade association can be disconcerting to its membership. It can be an incredible opportunity for competitors.

The IFA announced yesterday that it has hired an executive search firm—probably with “urgent”, “critical” and “HELP!” stamped all over the job description packet—to find a suitable candidate to replace its outgoing CEO, Matt Shay. He has given his month notice, April 16.

I added my two cents worth in Excellent point on Leadership continuity.

I suggest every half-baked, local not-for profit plans for their leaders’ recruitment, training and inevitable replacement. Leadership planning is the core competency of any boy scout troop let alone the “brain trust” of everything that goes bump in the night in franchising worldwide.

It seems the IFA Board is in crisis. A crisis, I suggest, that has been triggered by almost no new sales or re-sales in a recession (contrary to past cycles). They denied it first, got angry at scapegoats, bargained with Uncle Tom social medias, sulk/in a funk and then will be dragged unwillingly into accepting a new, higher-quality business model (see death stages).

D’oh!!

The elite’s catching on: their dinosaur practices has pushed the industry past the Tipping Point with investors’ confidence.

And they realize they are powerless because the internet’s reputation mechanism lacks an off switch.

John Q. Public investor is waking up (becoming conscious) to the fact that modern franchising is Unsafe at any Brand.

  • This is very good news for franchisees wanting to co-operate with each other and good faith franchisors.

Not so much for the opposite: house negro franchisees and predator franchisors.


Risks are unknowable in mom-and-pop franchising

March 13, 2010

It may seem a good deal.

Sure you answered all the obvious questions and it looks clean as a whistle.

You may sign on with a sweetheart but she can sell-out to a real bitch.

And your life savings are stay tied to the new whore.

Wise up.


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