It’s a bluff: Predatory franchising is an antiquated technology

July 30, 2009

WizardofOzThe industry elites know it’s curtains for predatory franchising.

What gave them power (litigation) has been stripped away.

Oh and the financial institutions (especially the government guaranteed loan program administrators) are very, very nervous about being past the tipping point.) They know what lenders’ due diligence duty is.

The old software was based on the economics of scarcity and is hopelessly, helplessly out-of-date.

Advances in  communication (bandwidth, storage & processing) have smashed the franchise bar’s closely-held monopoly on how franchising really works. What they charged $300 per hour for, is now largely available for free here, Blue MauMau or WikiFranchise.org.

It seems ironic that their crowning jewel (intellectual property) has been used against them.

Search a:

  1. tradename tag cloud or
  2. tradename directly (ie. McDonald’s or Quiznos), or
  3. name of a franchising executive.

Immediately, 100% anonymously and for free, this reveals what they had so successfully charged for  concealing in the past.  High-quality information, immediately available with the promise/threat of 1,00s of semi-anonymous contributors writing on WikidFranchise via personal narratives.

The true costs of opportunism (reduction in negative externalities) is more accurately being assigned to tradenames and and the individuals who control them. What we were told was random, now appears as it really is: a well-thought out system that is repeated all over the world. Designed as precisely as any Swiss watch.

  • The goal?: to re-distribute (not create) capital.

The King Experts, the thought-leaders  know this. The Fixers denied, got angry, bargained and then got into a major league funk in the last 10 years.

They now accept that putting the internet back in the bottle is impossible.

  • It is a revolution.

Franchisees need to walk into an empty room and go about their business of making money since the law has become irrelevant. The curtain has been pulled back.

Frightened, old fools: more to be pitied than ever feared.

What is current, has currency with politicians.

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How to Profit from Franchising’s imminent Meltdown

February 19, 2009

wickedwitch3That depends on what role you play in the coming psychodrama.

I’m not to interested in what Big Franchising will do: they will continue to act in a short-term self-interested way.

As far as franchisees, now that is more interesting. Most people only define franchisees as those currently in a franchise agreement. Nope: not me. Never have.

Defining a problem narrowly is the role of the fee-for service professionals. Only amateurs like me have the freedom to define something that will lead to solutions rather than blind alleys.

Also, active franchisees are under a sort of a spell.

They’re in a type of sleep-walk or a fairy tale. They are so stressed-out that their frontal lobes (System 2, rational mind) are inactive. They are in throes of a nightmare where the only thing that they can do is to fight or flee.

Former franchisees, like me, that hold the key but they must be able to integrate their life experiences with a rational understanding of how they were to put to sleep for a while. Working through the emotional pain of reliving their own franchise is the cost they pay for redemption.

Three groups:

  1. potential investors,
  2. current and
  3. past franchisees.

1. Potential: Profit by not signing any deal for one year. You will avoid the worse financial catastrophe in your life and I say this wiht a confidence of 19 out of 20. It is much, much preferable to be unemployed rather than in a franchise. Now is NOT the time to reach for that brass ring: Don’t do a Walter Mitty on your family.

2. Current: Profit by trying to imagine what would happen when (not if) your franchise is unable to discipline or litigate anyone. Start talking to a few other unhappy campers, read FranchiseFool, start a WordPress.com weblog (share information). Notice how your fears are all in your head?

If not, have your wife call me. Seriously: if you’re willing to put your pride before your family’s well-fare (welfare), you are acting like a moron, for the moment. The smart rats quit a sinking ship

3. Former: Profit by telling your story. Contact the people that you’ve lost touch with. Start contributing to Blue MauMau. Speak up: you’ve earned your voice and you better damn well use it when you can. Sure you betrayed other franchisees while getting out but that was then. This is now and you are needed.

Only a fool will continue to obey commands of a dead sorcerer.


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