Only through organization can franchisees access new-found justice

November 22, 2010

The Canadian judiciary is rapidly creating a franchisee-sensitive justice environment.

Franchisees need to help themselves, too.

In 1998, we published a mission statement for the first Canadian national franchisee association: Canadian Alliance of Franchise Operators, CAFO. A place where leaders for each franchise system could be developed (an association of associations).

It was going to:

improve the equity within the franchise industry, be recognized as the definitive franchisee voice in Canada, and promote responsible and enforceable government regulations.

It would be done through education, a Franchise Industry Registry, advocacy, research, legislation, membership services and the Canadian Centre for Franchise Excellence.

Ted Dixon at the INFO Franchise Newsletter published our objectives and has an archived copy here.

Fear mongering begins in Ontario Wishart Act proposed change

November 11, 2010

Some professionals hold fast to their word.

They continue to practice with integrity, dignity, grace and humour, often under extreme conditions.

If faced with insurmountable economic hardships, they choose to leave a field rather than sell-out their principles.

Bev Cline writing for the Globe and Mail attributes the following excerpt to a Sotos LLP partner:

Another concern is that franchisors will essentially be asked “to crystal ball gaze” into the future in creating the educational document, says Allan Dick, a franchise lawyer at Sotos LLP in Toronto. “Currently a franchisor has to disclose, through the disclosure document [as mandated by the Arthur Wishart Act], everything that is material to the opportunity,” says Dick. The disclosure document, he points out, “is not a ‘general’ document; it’s a very specific document for a specific opportunity for a specific franchise.”

So, in terms of the proposed educational document, Dick asks: “If the franchisee is relying on a franchisor who is being forced [in the educational document] to crystal-ball-gaze into the future, to provide information that the franchisor could not know, will this benefit the prospective franchisee?”

The point is that prospective franchisees’ immediate interest and goal is to “look for the best opportunity they can find to be successful in business,” says Dick.

The implied threat to politicians, always sensitive to job loss or creation, is in the last sentence.

In addition, if franchisors are held liable for predicting business prospects in an unrealistic way, says Dick, they may be reluctant to enter into certain markets in the first place.

In, Risk #12 is 95 per cent of legal fees are paid by franchisors. The full article: before and after I had “Wiki-ed” it (eg. told a story through a case study risk analysis).

Who are you going to trust?

— Thanks to This Isn’t Happiness

Reputation self-destruction relies on documents

November 8, 2010 is the only international, independent franchise-investor document repository.

It has proven over 18 months to be a bullet-proof safe harbour for information sharing. I choose what articles are included or excluded. I welcome all article, document submissions.

I do not like freedom of speech bullies very much.

WikiFranchise statistics for October 2010

November 3, 2010

Growth in 10 of 10 key activity measures for

Month-to-Month Change :: Month-over-6 Months Change

  1. Unique visitors: 3,451 or +9.7% :: +84.4%,
  2. Visits: 4,857 or +16.3% :: +88.2%,
  3. Pages: 39,382 or +49.6% :: +211.6%,
  4. Hits: 51,819 or +35.4% :: +169.2%, and
  5. Bandwidth: 1,160 MB or +19.1% :: +185.2%.

Size of most popular downloaded file: 20.71 KB

The Grange franchise investigation stands the test of time

November 2, 2010

Samuel Grange, Q.C. and his 1971 “Report of the Minister’s committee on Franchises”: the Grange Report.

In 1970, the Honourable Arthur Wishart, W.C., M.P.P. (Sault Ste. Marie),  Minister of Financial and Consumer Affairs commissioned a public inquiry into referral sales, multi-level or pyramid sales, and franchises. He appointed Grange to head a public inquiry. The current Ontario law was named in 2000, specifically to point backwards in time to Grange’s independent recommendations.

Even after almost 40 years, Justice Grange cuts through the nonsense.


1. Legislation is to apply to all industries and to all franchises within each industry
2. Prohibition against dealing in franchises except as provided
3. Franchisor to file prospectus setting forth detailed information on scheme
4. Franchisee to have compulsory 48-hour cooling-off period before execution of agreement
5. Franchisee to have right to apply to Tribunal or Court to determine,
(a) whether contract is fair; and
(b) whether conduct of franchisor is fair in circumstances
6. Tribunal or Court to discourage following:
(a) arbitrary termination
(b) arbitrary refusal of assignments or renewals
(c) arbitrary forfeiture of deposits
(d) forced purchases and secret profits
(e) competitive and discriminating practices by franchisors

1. The formation of a separate branch of division with its own Registrar to administer multi-level and franchise matters.
2. Control of advertising
3. Regular renewal of permission to operate to be required
4. Suspension and cancellation of permission to operate
5. Regular inspection of records
6. Provision for escrow of investments or fees to protect investors and franchisees
7. Application of legislation to leases as well as sales

Full Report

It is my impression that the current Ontario judiciary is on same frequency as was retired Appeal Court Justice Grange.

York University’s Osgoode Hall Law School Alumni Association Honours Three Outstanding Members of the Legal Profession

Record-breaking month for

October 2, 2010

Another set of records for September on

Almost 1 gigabyte of bandwidth in one month. The file size for most popular article was 20.5 KB.

Month-to-Month Records

  • Pages: up 79.2 % to 26,324
  • Hits: up 60.9% to 38,266
  • Bandwidth: up 59.0%  to 973.9 MB
  • Unique Visitors and Visitors: up to 3,145 and 4,177

Engineers study and fix system failures

September 26, 2010

You learn much more from failures than you learn from successes. Ask any pathologist or engineer.

I do my best work in small groups with an engineering focus.

Great engineers are few and difficult to take in high doses because of their drive, curiosity and enthusiasm.

Engineers also barely tolerate business administration, accounting and banking types: So much riding down the hill after the battle to kill the survivors.

Engineers do. They don’t just count.

Now that has documented the problem, let the engineers and physicians fix it; make it healthy, robust once more.

Okay? helps experts classify franchise systems

September 21, 2010

On a Scale of 1 to 7, How predatory is this system? Or that one?

Due diligence (mandatory, from a certified service provider) is necessary if you are entering a franchise agreement because of the many hidden business risks.

Source: Wikipedia

Top 10 viewed files on

September 5, 2010

Top 10 story views for August 2010:

  1. Franchisee Seeks Rescission for Alleged Bad Faith and Negligent Misrepresentation, 1,255 views, February 2009
  2. Hells Angels bricklayer plot busted, 634 views, November 2009
  3. Seniors beat up financial adviser with Zimmer frame, 387 views, December 2009
  4. Embattled eyeglasses empire grinds on, 373 views,  July 2008
  5. Mister Freeze, 226 views, February 2002
  6. Ice cream dream becomes nightmare,  225 views, August 2010
  7. Millions are at stake in Pizza Pizza dispute, 119 views, September 1993
  8. Flamboyant ex-convict at centre of pizza battle, 117 views, May 1993
  9. Bulk Barn saddled with class action, 105 views, August 1999
  10. Freshii ideas, 89 views, May 2010

Check out how old these files are.

I wonder if the Toronto Star or Kevin Donovan (#7 & #8) knew people would still be reading about their ground-breaking franchise work 17 years from the published date?

Assigning an accurate reputation to an industry is a prerequisite for any sustainable relationship.

Attentive presale due diligence is highly unreliable.

August 21, 2010

You maybe looking for one risk, be 100% accurate in quantifying it, sign but get totally blindsided by a hidden risk.

Our brains evolved to look for certain types of risks. They suck with highly abstract risks.

The breadth and depth of these dangrs is what I;m trying to suggest in my Risks section of

This video shows how easily attention to one thing blinds you to another.

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