Will “brand strength” or hard fought-for legal provisions likely preserve Tim Hortons franchisee, staff, supplier and communities relationships?

February 23, 2015

In 2000, Tony Martin asked Tim Hortons VP Nick Javor which of their franchise agreement terms protected franchisees when a merger happens.

lao

In his public hearing testimony which lead up to Ontario’s 1st franchise law, Mr. Javor seems to suggest the “brand” is strong enough. He was silent on the contract provisions needed.

Mr Martin: I don’t think there’s anybody who’s suggesting that there aren’t good franchise systems around, and certainly Tim Hortons presents at this time as one of those good systems, for all the reasons you’ve laid on the table here today. What you have we want for all the systems, because when a system goes sour, as you suggest in the Pizza Pizza case, you’re all painted with the same brush. That’s unfortunate. It affects a good business relationship and ultimately probably affects the franchisee the most because they’re the most exposed and vulnerable.

My concern is when good systems get sold, and that’s happening. There’s a trend today where the bigger guy eats up the smaller guy and the relationship changes. We had that experience here in Sault Ste Marie where Provigo bought out Loeb and wiped out two of our best corporate citizens overnight. They slept in their stores for two weeks to protect their interests. That’s how difficult that was.

We’ve heard that 241 Pizza has just bought out Robins Donuts. What happens if tomorrow Pizza Pizza buys out Tim Hortons? Do you have anything in your agreement with your franchisees that protects them in that instance?

Mr Javor: That’s a very good question, Mr Martin, because this is the day of mergers and acquisitions. This is the business strategy of a lot of folks. I would answer your question with perhaps a description of our franchisee relationship. I think successful franchisors and chains and brands get successful not by accident but because of the hard work and everybody’s focused on a mutual goal. The mutual goal in our organization, and other franchisors who have been privileged to be as successful as us, is clear: to deliver customer service and realize that the way we get excellent customer service is by having franchisees who are committed to that. We have a strong culture of excellence and commitment. I think it would be very difficult for a new ownership group to come in and absolutely take away what’s taken us 30 years to earn and to grow together with our franchisee ownership.

The fact that we involve our owners a lot in our business at the advisory board level and committee level that I mentioned earlier I guess is a testament to the strength of that commitment we have to ourselves in the marketplace, and that is bigger than the contract. It takes many years to change cultures at corporations. Those of us here who have been in private business over the years understand that. Truly, yes, the top of the house or the CEO and president help set the tone – that’s well-documented research – but also when you have a strong commitment at the grassroots level in your community, where your franchisees are absolutely actively involved in supporting your community, because they know where their bread is buttered. It’s not downtown Toronto, it’s all the communities where we have stores in our particular chain across the country.

I honestly think that when a merger and acquisition comes along the strength of the brand will come through based on these types of commitments and relationships.

Mr. Javor and Tim Hortons were active in the spirited behind-closed-doors debate of the proposed amendment to the Arthur Wishart Act, Bill 102 in 2010: here, here and MPPs seek anti-swindling law for franchises.

Mr. Nick Javor, LinkedIn


What is the Canadian Franchise Association doing to protect the 1,100 CDN franchisees and 96,000 employees at Tim Hortons?

February 1, 2015

The Canadian Franchise Association says it …advocates on behalf of franchisors and franchisees in Canada

CFA

Tim Hortons is a member of the CFA. The CFA’s Code of Ethics says that their members’ should treat each other with fairness.

Tony Martin former ON MPP and MP made certain recommendations from his experiences during the public hearings which led to Ontario’s 1st franchise law.

News Release
April 4, 2000

Investigate Franchise Association Abuses: Martin

Tony Martin, MPP

Tony Martin, MPP, Sault Ste. Marie
New Democratic Party
News Release
Legislative Assembly of Ontario, Canada

INVESTIGATE FRANCHISE ASSOCIATION ABUSES: MARTIN

TORONTO – The Consumer and Commercial Relations Ministry should investigate the Canadian Franchise Association over its failure to help Ontario franchise holders, NDP MPP Tony Martin said today.

The CFA is advising the Conservative government on proposed changes to provincial laws governing franchise agreements. But the association is under fire from hundreds of its own members for its indifference to their complaints, the NDP Critic for Consumer and Commercial Relations said in the Legislature today.

“The CFA has been of no help to many hundreds of entrepreneurs who lost their shirts in shoddy franchise deals,” Martin said. “Instead of taking the CFA’s advice this government should be sending in ministry staff to thoroughly investigate this association’s failures.”

Martin raised the case of Brenda Hope, a mother of two from Coldwater who lost $90,000 as a Chemwise Inc., franchisee. For more than a year, the CFA has refused to look into Hope’s complaints, although it endorsed Chemwise as a member.

Similarly, the CFA has refused to accept a registered letter from Bulk Barn franchisees who have a series of complaints against the franchisor. Martin was also refused when he tried to deliver the letter. The Sault Ste. Marie MPP called on Consumer and Commercial Affairs minister Bob Runciman to act now to protect small businesspeople.

“Perhaps the minister can convince the CFA to live up to its responsibilities to mediate franchise disputes. If he can’t, we need a full-scale probe of this group. It’s the least we can do for hard-working families who lose everything in dubious franchise deals,” Martin said.

The MPP has proposed his own legislation, Bill 35, that is far tougher than the government’s Bill 33. The Martin Franchise Bill would require full-disclosure of franchise contracts, a dispute resolution mechanism, the right to associate and the freedom to source products outside of the chain when not trademark related.

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Also: Martin’s questions directed to the CFA during their Mar 2000 expert witness testimony.

Source

CFA National Sponsors


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


Who gets hurt when hundreds of families are attacked?

February 8, 2011

Not visible at CFA galas perhaps.

[Copyranter]


Ontario franchisees: 9 months to our most important provincial election ever

January 7, 2011

Best chance ever to protect franchise families.

If you won’t act to support pro-franchisee MPP candidates in 2011,  Why the hell should they give you what you want in the face of the demands to the contrary by Big Auto, Grocery and Oil, their fat cat lawyers and the Canadian Franchise Association?

You, your spouse and your family want:

To Do:

  1. Call your current MPPs constituency office (see here, postal code lookup) and ask for a 10 minute interview. Insist, take your spouse and follow-up in writing.
  2. Offer to and then donate as a sign of goodwill to (a) your home riding and (b) the Bill 102’s co-sponsors: Jaczek, DiNovo & Miller (time preferably but $ only if lazy).
  3. Handwrite a note to each party leader’s riding office: McGuinty, Hudak & Horwath.

Stand up because the backroom weasels have been all over Queen’s Park saying that your family doesn’t deserve what little protection that the Wishart Act gives you now.

Need a vehicle, a Tims or a Big Mac this year?

  • Ask your local franchisee if he’s going to continue to sit on his hands this time out or will he stand up on his 2 legs with you?

People sacrificed for these democratic rights.

For selfish reasons alone, use them or lose them.


Is a weak/any franchise law better than no franchise law?

October 31, 2010

In my opinion, no.

Why I believe this goes back a little ways.

No Law: In 1998, Mr. Ken Fong, McDonald’s Canada, VP and Corporate Counsel formed an industry  committee together to discuss ways and means to have industry disputes heard in other than the Courts. I attended as the founder and president of the Canadian Alliance of Franchise Operators, CAFO the 1st and only national franchisee advocacy group.

In Feb 1999, I was vigorously questioned by a couple of the 2nd Tier attorneys on the committee about my unwillingness to accept a “disclosure-only” law solution. The industry wanted a law to give an impression of order and oversight in what was seen as the “wild west of the business world”. They wanted what I subsequently defined as a McLaw: toothless legislation designed to protect the dominant parties.

It became apparent at that meeting that CAFO either:

  1. agreed with their desire for a McLaw or
  2. CAFO/Les was not welcomed at the meeting.

I quickly showed the work we had done on the corporate Identification of a proposed industry dispute resolution process, thanked Mr. Fong and shook his hand, and left the meeting.

McLaw passed: In June 2000, I sat with some other franchisees in the opposition guest gallery at the Ontario legislative assembly and watched the Canadian Franchise Association get the law they wanted: Arthur Wishart Act (Franchise Law), 2000.

However, the Ontario judiciary are not easily intimidated, black-balled  or threatened.

Judge-made law: Provincial court justices are smart, independent-minded (no elections) and not easily fooled. Since 2000, they have tended to assume that the Wishart Act was passed as a sincere piece of legislation and that its intent was to protect franchisees.

I listened to Chief Justice Winkler last year at the Ontario Bar Association’ Franchise Law Conference in Toronto and he was just great! He told the +100 attorneys that every justice knows the “deal” about franchising because they have all had franchisee clients before being called to the bench. One of the two attorneys at side seemed a little ill-at-ease.

I can hardly wait for Thursday to see what Ms. Debi M. Sutin (Gowling Lafleur Henderson LLP) and Ian N. Roher (Teplitsky, Colson LLP) as co-chairs will be presenting.

Record attendance again in 2010, I bet.


Cut the crap. Gimme me some more of these Talking Heads

October 27, 2010

This ain’t no party, This ain’t no disco: Stop fooling around.

A media release

In the world of franchising, few brands have the luxury of expanding their business with a cult-like brand following and organic public interest. Vancouver based franchisor, Men in Kilts, is among the lucky few who have had this experience. Rather than going through the usual motions of aggressively marketing and blanket selling franchises, the company is literally turning down hundreds of would-be franchisees. The rationale behind this decision? An uncompromising model of sustainable, long term growth that is heavily focused on the success of individual franchises – a system strategically designed to attract the best-of-the-best.

Member of the Canadian Franchise Association? Nope.

  • Key success factors: Watching someone in a dress power wash your house?

My, my. my.

Life During Wartime, Talking Heads from the 1984 documentary Stop Making Sense

Heard of a van that is loaded with weapons
packed up and ready to go
Heard of some gravesites, out by the highway
a place where nobody knows
The sound of gunfire, off in the distance
I’m getting used to it now
Lived in a brownstone, lived in the ghetto
I’ve lived all over this town

This ain’t no party, this ain’t no disco
this ain’t no fooling around
No time for dancing, or lovey dovey
I ain’t got time for that now

Transmit the message, to the receiver
hope for an answer some day
I got three passports, couple of visas
don’t even know my real name
High on a hillside, trucks are loading
everything’s ready to roll
I sleep in the daytime, I work in the nightime
I might not ever get home

This ain’t no party, this ain’t no disco
this ain’t no fooling around
This ain’t no Mudd club, or C. B. G. B.
I ain’t got time for that now

Heard about Houston? Heard about Detroit?
Heard about Pittsburgh, PA?
You oughta know not to stand by the window
somebody might see you up there
I got some groceries, some peanut butter
to last a couple of days
But I ain’t got no speakers
ain’t got no headphones
ain’t got no records to play

Why stay in college? Why go to night school?
Gonna be different this time?
Can’t write a letter, can’t send a postcard
I can’t write nothing at all
This ain’t no party, this ain’t no disco
this ain’t no fooling around
I’d love you hold you, I’d like to kiss you
I ain’t got no time for that now

Trouble in transit, got through the roadblock
we blended in with the crowd
We got computers, we’re tapping phone lines
I know that ain’t allowed
We dress like students, we dress like housewives
or in a suit and a tie
I changed my hairstyle so many times now
don’t know what I look like!
You make me shiver, I feel so tender
we make a pretty good team
Don’t get exhausted, I’ll do some driving
you ought to get you some sleep
Get you instructions, follow directions
then you should change your address
Maybe tomorrow, maybe the next day
whatever you think is best
Burned all my notebooks, what good are notebooks?
They won’t help me survive
My chest is aching, burns like a furnace
the burning keeps me alive
Try to stay healthy, physical fitness
don’t want to catch no disease
Try to be careful, don’t take no chances
you better watch what you say


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