Franchisees: master storytellers caught in a literate machine

December 11, 2008

chaplinmodernFranchisees have primarily retained their geographically-specific, oral culture. As a species we have survived because of our ability to listen to and tell stories (a narrative), appropriate to a specific narrowly-defined physical landscape.

  • We’ve never needed to be that smart at rational decision making, especially if time and complexity are added.
  • We’ve evolved to look for dangers in certain places only.

The most vibrant research is coming out of the fields of behavioral finance, social psychology, law and economics, neuroeconomics, etc.

  • Basically, we walk around scratching ourselves with a belief that our rational brain (neocortex) is in charge, while in fact, 90% of what we do is caused or strongly influenced by our reptilian brain or the limbic system. [We think Spock is in control but we behave as if we’re Lucy Ball.]

Mankind has evolved primarily as a member of tribal structure within a hostile natural environment. Only since the industrial revolution,  has a phonetic alphabet gained its ascendancy in the West.

Our culture (Literate Man) views oral or tribal civilizations as more primitive, backward. Voltaire’s Bastards worked very hard to stuff the native genie in the bottle and they were extremely successful in doing so. There were some unintended consequences (externalities) though with this world view: slavery, theft, genocide, arms race, environmental collapse…

The printing press was the technology that revolutionized Western civilization. It brought with it many impressive and life-enhancing benefits. These, through a rational, Literate Man’s eyes, make them superior to the older, oral traditions.

The Gutenberg Galaxy (phonetic literacy) is an infinitely repeatable, homogenous and repetitive juggernaut. Franchise agreement is an example of an archetypal, industrial revolution machine. It is a colonial instrument intended to be used to control the savages (see indentured service).

A new technology (electronics) came along and now we in the West are in a postliterate age. And this scares the hell out of the self-identifying rational Supermen (ie. the franchise bar). They can hear the drum beats over at Blue MauMau.

  • All the franchisees have to do is to cast off their own blinders and assume their rightful leadership role via internet information sharing.

We know how to flip the switch, notwithstanding the huffing and puffing.

— Modern Times, Charlie Chaplin

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Does Big Franchising at least legitimize The Big Con?

September 7, 2008

I have been reading a neat book called The Big Con: The Story of the Confidence Man by a dead American linguistics professor called David Warren Maurer.

This is what Wikipedia has to say that is catching my eye:

Maurer spent his career recording the argot of moonshiners and pickpockets, but The Big Con is his masterwork. …The Big Con reeks of 10,000 conversations in poolrooms and Pullman cars; its sentences ring with the raffish patois of ’20s and ’30s Americans on the move. “I’d sooner be a lamster any day than be tied up to a lop-eared mark,” grouses one sharpie stuck with simpleminded prey.

While working on his magnum opus, Maurer won the trust of hundreds of swindlers, who let him in on not simply their language, but their folk-ways and the astonishing complex and elaborate schemes whereby unsuspecting marks, hooked by their own greed and dishonesty, were “taken off” – i.e. cheated – of thousands upon thousands of dollars. The products of amazing ingenuity, crack timing, and attention to every last detail, these “big cons” richly deserve Maurer’s description as “the most effective swindling device which man has ever invented.”. The Big Con is a treasure trove of American lingo (the write, the rag, the payoff, ropers, shills, the cold poke, the convincer, to put on the send) and indelible characters (Yellow Kid Weil, Barney the Patch, the Seldom Seen Kid, Limehouse Chappie, Larry the Lug). It served as the source for the Oscar-winning film The Sting and will delight fans of such writers as David Mamet, Jim Thompson, Elmore Leonard, and William Burroughs for its droll, utterly authoritative look at the timeless pursuit of relieving one’s fellow man on his surplus cash.

And an except of a book review from the Mad Professor:

If you’ve seen The Sting, then you have the basic idea of how a big con works. It’s basically a theatrical production with elaborate sets and costumed actors for an audience of one. But the audience member thinks the production is real, and ends up losing his life savings by the time the curtain closes. The two most surprising things I learned from reading this book: one, the con men, who work so hard to set up a con and take the mark’s money, usually blow their cut immediately by gambling it away, and two, the victims of cons often return to the con men to get fleeced again, even when they know they were conned the first time.

To me, the second point is crucial: Maurer says the swindlers tell him that over 50% of victims get taken at least 2 times. Many get taken several times…by the same play [versions of the big con].

Another review which ends with the following question:

…where is the big con today?

Fueled with SBA or other easy credit, almost anyone can be roped into the next half-assed, unproven franchise scheme. They don’t just take your current dough and leave you with a warm feeling for the inside man, they take your future life savings, labour and often your health. And your spouse’s too.

  • You end up broke, gagged, shamed and most dangerous of all, unaware of how to learn from these experiences.

Big Franchising acts [alone or as a tag team: see Australia lawmaking] to protect their legitimate business interests which is fair in a market-driven democracy. But by doing so, they create a legal  and political influence umbrella that nourishes a commercial cancer called mom and pop franchise opportunism.

Economics classifies this out-of-control negative growth (cancer) an externality,


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