How long will CDN organized labour & the NDP fiddle while 96,000 Tim Hortons franchisees’ staff and management burn?

January 31, 2015

Makes a citizen democrat want to burn up his orange card.

ndp card

How about the nearly 1,100,000 other Canadian employees/families that work in franchised outlets?

Don’t the union and NDP brainiacs understand that 3G Capital will be forcing the franchisees to do their dirty work by laying off tens of thousands of their hourly and managers, many of them personal friends? Hello: jacking up franchisees cost of goods to +32%, driving their “equity” into the red, makes layoffs inevitable.

Franchisees dislike unions true. But the fear and loathing for the vulture capitalists is profound, notwithstanding the company-man, shill franchisees.

Smart, silent current franchisees know the sewer they’re being sent into: Country Style, Second Cup, Coffee Time, Bakers’ Dozen, etc.

Franchise Industry Statistics, 1998

  • Number of Employees: Ontario 400,000 to 600,000 (Canada 760,000 – 1,140,000)
  • Annual Retail Sales: Ontario $45 to 50 billion (Canada $90 billion)
  • Number of Franchisees: Ontario 40,000 (Canada 76,000)
  • Total Investments: Ontario $2 to 8 billion (Canada $3.8 – 15.2 billion)
  • Number of Franchisors: Ontario 500 (Canada 1,300)
  • Franchised Retail Sales (% of Total Retail): 40
  • Number of new lawsuits per year in the Ontario Franchise Industry: 5,000 Ontario Government

I’d like to know:

  1. How many NDP executive positions in joint provincial/federal ridings (Simcoe Grey and Barrie-Springwater-Oro-Medonte) do I have to volunteer/toy with to get an audience from the ON NDP? Monthly payer?
  2. Maybe Ms. Nash MP should ask Charlie Angus ($15 per hour minimum wage?) about the work that Tony Martin former MPP and MP and I did,
  3. Or maybe Mr. Singh and Ms. Horwath need to check their egos and start bragging about what the entire Hampton caucus did to get Ontario’s 1st franchise law and the de facto Canada-wide statute after 30 years of all-party broken promises?
  4. Maybe check with the Fightfor15.org people to find out why they are very, very interested in knowing more about franchising?
  5. btw: McDonald’s (franchisor and franchisees) has just been fined by the U.S. National Labor Relations Board because they judge McDonald’s as a “joint employer” (see here, here).

Full Disclosure: I was a franchisee (twice), studied poli sci, a member of the Teamsters’ union, and continue to be viewed as a “union organizer” by franchisors and their toadies.

Based on the theory that your enemy’s enemy, is your friend, you’d think it’d be Palm Sunday for Mr. Stewart and the Canadian Alliance of Franchise Operators rather than a type of amateur hour.

Kathleen Wynne Les Stewart

With friends like this, it almost makes a guy see red.

Dale Carnegie moment: Of course, saying you care about the lost jobs is a lot easier than having to co-operate with people that have, like, technical knowledge of the most sophisticated form of international commerce: business format franchising.

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Bothams WA Inquiry Sees no Evil…

April 30, 2008

Chris Bothams released his final report this week entitled: “Inquiry into the Operation of Franchise Businesses in Western Australia”.

You judge for yourself: How close to your experience is it? (free download).

Pro:

  1. a national franchisor registration would be nice (including the sunk cost-captured franchisees, of course), and
  2. make proposed government-submitted disclosure documents accessible on the internet (just like Caleasi in California is now).

Con:

  1. it is +30 years behind the times,
  2. potentially misleading, and
  3. mostly irrelevant.

As far as intellectual rigour goes, let’s compare Botham’s report to a Canadian report. In 1971 Samuel Grange who retired as an Ontario Appeal Court justice, said this about franchising:

Throughout the evidence it was a recurring complaint that the franchisee is constantly plagued with the threat of termination of the franchise…

Further…

…the franchisee has invariably invested time and money, and he knows that he will lose it all if the franchise comes to an end. Naturally, he is prepared to be servile, and if not, he is generally not long for the franchise family. p. 40 [my emphasis] [Grange Report full monty]

Unlike Mr. Bothams, Grange did his insightful work without the benefit of reading Gillian K. Hadfield’s work, especially Problematic Relations: Franchising and Law of Incomplete Contracts [BTW: 49 of the most important pages ever written about franchising].

Mr. Bothams ignores the unique vulnerability that franchise investors suffer from (vis-a-vis independent business):

Franchisees own the unit’s assets but their life savings are controlled by someone else (the franchisor).

This ownership/control separation is makes the relationship totally unique.

The franchisor can further use their 101 discretionary powers to further strip time and money from the investor during the course of their relationship.

To mention only once and in an extremely narrow reference, the central fact of franchisor opportunism, suggest the inherent bias of this report.

My Contributions: Please also note on page 68 (Appendix 3: List of Submissions), Number 2: Les Stewart Consulting. That’s me. For what it is worth, I sent the most current, internationally recognized academic research to Mr. Bothams’s office.

This report goes out under his signature to Minister Margaret Quirk. My guess it will quickly sink out of sight.


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