Due diligence cannot prevent much greater post-sale risks

April 24, 2011

Risk assessment is a snap-shot.

Franchising favours the house (franchisor).

If you play a Game of Chance know before you begin

If you are benevolent you will never win.

William Blake 1757 – 1827

Brace yourself like a fighter

January 26, 2011

God is the master of the forces of evil

Yahweh gave his answer from the heart of the tempest. He said:

Brace yourself like a fighter, now it is my turn to ask questions and yours to inform me.
Do you really want to reverse my judgement, and put me in the wrong to put yourself in the right?
Has your arm the strength of God’s, can your voice thunder as loud?
If so, assume your dignity, your state, robe yourself in majesty and splendour.
Let the spate of your anger flow free; humiliate the haughty at a glance!
Cast one look at the proud and bring them low, strike down the wicked where they stand.
Bury the lot of them in the ground, shut them, silent-faced, in the dungeon.
I myself will be the first to acknowledge that your own right hand can assure your triumph.
Job 40: 6-14

The Ancient of Days, William Blake, 1794

Franchisors play the role of the false target

November 25, 2010

Identify the real protagonist, the Fixers.

And those that rent money.

The surest sign of a dying empire is when a franchisor starts  self-financing when new franchisees had traditionally used a regulated lender.

Very high dangers of private, unregulated lending (prime plus 5%). Same as loan sharking.

Your house is the real asset at risk, not some phantom idea that you have equity.

See Champions of Tyranny What will the grocers say?


The case for repealing disclosure laws

September 25, 2010

Any law exists because those most able to compete for it goes to the political process and wins.

This is how the Ontario franchsie law went in 2000. I was there.

Everyone’s interests were served very well, except the powerless: mom-and-pop franchise investors.

Sure a few attorneys were made multi-millionaires (continue to blackball, block and betray sincere advocates), the franchise bar has reached record numbers (God love those disclosure document revisions!) while the 2nd-worst-chumps, the false protagonists (the franchisors) got  a short-term sales bump but their reputation continues to nose dive.

On any legitimate public policy level, the Arthur Wishart Act is a complete and total failure.

But as a way to launder mom-and-pop life savings via dim-witted franchisors?

Priceless to the true champions of tyranny (the franchise bar legal elite).

The public Role of Tier 2 franchise attorneys

August 12, 2010

In my post On the Nature of Tyranny, I tried to present Northrop Frye‘s analysis of William Blake.Blake saw the fundamental struggle on earth between two opposing forces:

  1. champions of tyranny (not the apparent nasties but those that profit from defending them; those that write for power; sophists) and
  2. visionaries (the “enlightened ones” lol).

Franchise bar: In advanced franchising cultures, there are two archetypal fixers: one for the franchisors and ditto for franchisees.

Everyone else in the franchise bar is lower status individual, dependent on these two alpha males and the evolution of the bar’s sociology: norms, history, rewards/punishments, career advancements, access to law makers/regulators, referrals, who is “us” and who is “them”,  etc.

One role of the Tier 2 attorneys is to engage in battles on behalf of the pack when here is a threat.

Their out-of-character behavior explains a lot about a system that created, empowers and defends tyrants.

Where shame is, there is also fear.

July 18, 2010

1. People think the most fearful people in franchising are franchisees.

They are wrong.

Franchisees certainly have difficulties but theirs are simpler and easier to deal with.

2. People then would believe that franchisors are pretty heavily weighted down with shame.

Yes. They have their share but not the majority.

3. The franchise lawyers are the locus of the majority of all shame-humiliation. They are crippled by it. The greatest fear I have ever seen is in the eyes of attorneys that I know. Some so great they are speechless when I see them.

Their role is to be Champions of Tyranny as Northrop Frye pointed out in his analysis of Blake.

Truth never comes into the world but like a bastard, to the ignominy of him that brought her birth.

John Milton 1608 – 1674

The iron hand crush’d the Tyrant’s head

May 19, 2010

William Blake 1757-1827

A robin redbreast in a cage
Puts all Heaven in a rage.

Forgiveness of enemies can only come upon their repentance.

A dog starved at his master’s gate
Predicts the ruin of the state.

The iron hand crush’d the Tyrant’s head
And became a Tyrant in his stead.

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