Social media breaks predatory franchising model

January 20, 2010

It also breaks the franchise bar’s monopoly. There is no place in pride for a courtroom.

Jerome Facher: [to law students] Now the single greatest liability a lawyer can have is pride.

Pride… Pride has lost more cases than lousy evidence, idiot witnesses and a hanging judge all put together.

There is absolutely no place in a courtroom for pride.

A Civil Action movie

Franchisees have a Right to Exist

December 5, 2008

Franchisees and franchisors are separate peoples.


They are nations within nations. Each have natural rights as every citizen in the world has rights.

These obligations exit above mere commercial contract law.

Franchisees: While they may come from different countries, speak different languages in different geographic settings, they more alike than they are dissimilar. They become more and more alike the longer they remain as franchisees.

Franchisee leaders are often singled out for sanctions from franchisors and the industry. It is not just the personal humiliation and shunning. That’s corrosive enough.

  • It gets personal. It really can be seen as one side believing the opposition does not deserve to work: Does not deserve to actually live.

Franchisee leaders being called scum in U.S. congressional hearings. AUS SLAPP lawsuits are used to bankrupt dissent. Media articles are planted to pressure employers to fire advocates. I’ve had corporate head hunters laugh in my face when they find out I am “that” Les Stewart.

  • If there is any hope for retail franchising, this colonial attitude, which is an expression of a totalitarian regimes, must stop.
  • And it must stop immediately.

It is impossible to negotiate a power-sharing arrangement between different but equally-important peoples when one side engages in economic, career and reputational genocide.

In ancient Greece, hubris referred to actions which, intentionally or not, shamed and humiliated the victim, and frequently the perpetrator as well. In modern English, it indicates overweening pride, self-confidence, or arrogance, often resulting in fatal retribution.

The Greeks considered hubris as not ONLY the most serious personal sin but a criminal offence.

  • Their caution is communicated in the story of the winged Icarus and his remarkably skilled father Daedalus.

It is easy to enslave a people when the only alternative is a monopolized Court and political system. Internet-based information sharing of archived, indexed and free industry behavior records shifts the power balance. Forever.

  • Almost universally, indigenous peoples are much more generous with bully conquerors than their behavior ever justified.

Ponzi scheme unwinds in Real Time on Blue MauMau

August 30, 2008

Interesting times over at Blue MauMau for franchisor Dale Nabors of Cuppy’s Coffee and More as he responds to allegations of running a Ponzi fraud (see Cuppy’s Speaks Out on Accusations, SBT, AAFD and More).

Janet Sparks is one of the most experienced and knowledgable franchise journalists there is. Period. She is a real professional that is not afraid of many of the things that go bump-in-the franchise night.

I think it is the best if Mr. Nabors speaks for himself and I would encourage everyone to read this whole story:

“I’m putting money into the company, and the company is putting money into the projects. In a roundabout way I guess it’s fair to say yes, I am putting money into the company to cover some of these projects. But these are very few projects.”

In a posting entitled Cuppy’s Fraud, Michael Webster (see Misleading Advertising Law) responds in a blunt and  thoroughly unCanadian fashion:

  • When Nabors says “he was having to put capital into the businesses to keep them moving forward, and some of those monies in turn are used for construction and build out. He said there had been projects that monies were paid on and those monies went into a general operating account and were not used specific for a project.” this is an admission of fraud.

Webster goes on:

You cannot take money borrowed by A to pay off building out B, although you can certainly count on the support of B when that happens or is promised to happen.

This is not a construction company pretending to be a franchise company.

This is a construction ponzi scheme
, taking funds from later investors, paying off earlier investors, pretending to be a franchise company.

These related entities are insolvent and the creditors need to shut this mess down immediately, appoint a receiver and come to an equitable solution.

Nabors call for more time is the typical whine of a ponzi operator. [my emphasis and format]

His allegations are numerous, serious and very interesting. Take a close look. I have worked with Michael Webster for several years. He is a very careful person, a skilled litigator and fraud investigator. The last guy I’d want to oppose in a biz op or franchise swindle, if I were so inclined.

<span>%d</span> bloggers like this: