WikidFranchise

That’s left some franchise owners, who invested an average of $150,000 to $200,000, desperate according to Les Stewart, head of the Canadian Alliance of Franchise Operators. On LaSalle Boulevard

Les Stewart, president of the Canadian Alliance of Franchise Operators, says the stores have increased sales by 88% over the last eight years, despite the increasing market share of rival home office outfitter Staples/Business Depot, which has about 190 Canadian stores. The Financial Post November 5, 2001 Grand & Toy mediation strikes out 23 franchisees suing retailer over move to take back stores Hollie Shaw A mediation session has failed to quell a dispute between Grand & Toy Ltd. and a group of its franchisees who are suing the office supply retailer for up to $29-million in damages. Grand & Toy, which has 75 stores across Canada and an extensive direct-to-office business, informed the franchisees in June that their franchise agreements would not be renewed. The retailer offered no compensation to the owner-operators, and said it would take back the stores at the end of December. The 23 franchisees, all in Ontario, believe Grand & Toy's actions contravene parts of the province's franchise law, and argue they had been assured of a long-term relationship with the company. In a July 25 statement of claim, the franchisees allege that their most recent contract, signed in 1998, was oppressive and saddled them with unfair fee increases; that Grand & Toy appropriated the franchisees' commercial accounts, reducing potential profitability of the stores; and that Grand & Toy required franchisees to pay for store improvements at largely their own cost. The franchisees want $24-million in damages from Grand & Toy for alleged breach of duty, breach of contract, negligence, and breach of fiduciary duty, and an additional $5-million in punitive damages. Alternatively, they are seeking $12-million in damages for wrongful dismissal, plus the $5-million. A mediation session two weeks ago failed to yield results. Grand & Toy has yet to file a statement of defence in the civil case, but in a Dec. 6 motion will request further details in the plaintiff's statement of claim. The franchisees' lawyer, Evert Van Woudenberg, argues the franchisees enhanced the retailer's brand by increasing sales. "They need to pay fair compensation for the value of the businesses," Mr. Van Woudenberg said in an interview. Les Stewart, president of the Canadian Alliance of Franchise Operators, says the stores have increased sales by 88% over the last eight years, despite the increasing market share of rival home office outfitter Staples/Business Depot, which has about 190 Canadian stores. Grand & Toy argues it is under no legal obligation to renew the franchise contracts or pay compensation. Ontario's new franchise law, which came into effect last January, says both parties must treat each other in good faith and in a "commercially reasonable" manner. When Grand & Toy's corporate stores were struggling in the early 1990s, company officials approached store managers with offers to take over the businesses as franchises. "This isn't a franchise as you or the public would believe it is," said Brian Ward, Grand and Toy's vice-president of retail. "This is a licence agreement that called for very little investment on the part of the licensee. Grand & Toy has put all of the investment into these businesses. The licensees bought all of the inventory, but we're buying it all back." The owner-operators did not put any money into store improvements, he said. Running corporate and franchise divisions had become costly for Grand & Toy, Mr. Ward said, and "the business model no longer worked. As our company becomes proportionately more focused on the [direct to office] contract business, the licensed environment becomes challenging." Just 20% of Grand & Toy's yearly revenues come from its retail division. Management wants to open more corporate stores across Canada this year, Mr. Ward said. moc.tsoplanoitan|wahsh#moc.tsoplanoitan|wahsh Brought to you by WikidFranchise.org Risks: Converted managers into franchisees, Arthur Wishart Act (Franchise Disclosure), 2000, Canada, Les Stewart, Canadian Alliance of Franchise Operators, CAFO, Expropriation without compensation, Refusal to renew contract, Lawsuit, group, Mediation, Mediation as information gathering, Bad faith and unfair dealings, Franchisee association, independent, Canada, 20011105 Grand &

Stewart claimed Nutrilawn did not renew his contract because he had become a vocal franchisee advocate. In September, 1996 Stewart founded the Canadian Alliance of Franchise Operators (CAFO). He

In fact, one of our guests here today, Mr. Stewart, the founder of the Canadian Alliance of Franchise Operators, has stated, “I have carefully reviewed this private member’s bill and really

"The franchisees are in shock — they are worn out," said Les Stewart, head of the Canadian Alliance of Franchise Operators, who complained yesterday that the company did not give enough warning

Sterling FOR IMMEDIATE RELEASE TORONTO – This afternoon, in a pres release entitled “Country Style Donuts: Minister cancels meeting,” Les Stewart of the “Canadian Alliance of Franchise Operators” issued a press release claiming that the office of the Minister of Consumer and Business Services had cancelled a meeting with him and two Grand and Toy franchisees. On the weekend, Mr. Stewart also told Toronto Star reporter Madhavi Acharya-Tom Yew that “The Alliance plans to meet with Consumer and Business Services Minister Norm Sterling on Monday to discuss the Country Style action.” CBC radio and other media outlets aired similar reports. In truth, Mr. Sterling had scheduled a meeting with Grand and Toy franchise owners to discuss the concerns of over two dozen G & T franchisees. Mr. Stewart’s attendance at that meeting was considered peripheral to its purpose, which was to offer the franchisees an opportunity to discuss their issues with the Minister. Earlier this morning, Ministry staff were forced to confront Mr. Stewart to clarify just what he thought the meeting was about. When asked about his remarks to the Star, Mr. Stewart described the remark in the Toronto Star as a “misrepresentation” of what he had said, despite the fact that his release this afternoon makes it clear that he intended to discuss both issues at the expense of time intended for actual franchisees on a long-standing issue. At no time did the Ministry have any plans to discuss the Country Style concerns, in part because the issue was new to the Ministry as of this weekend and is distinct from the Grand and Toy matter. For the record, Minister Sterling met with a franchise holder for the Grand and Toy at College Park this afternoon, as scheduled. A meeting with a second Grand and Toy franchise holder was being scheduled well before Mr. Stewart’s release was issued. “The meeting with one Grand and Toy franchisee today was informative for me and, I hope, productive for the franchise holder. I am happy to have more meetings directly with franchisees and franchisors in the future, but we must approach these issues with great care as they are before the courts.” Minister Sterling said. Contact: Brian Kelcey Press Secretary (416) 326-3001 Disponible en francais For more information visit www.cbs.gov.on.ca This news release was available at: http://www.cbs.gov.on.ca/mcbs/english/news_releases.htm It has since been removed from the Ministry’s information archive. Brought to you by WikidFranchise.org Risks: Canadian Alliance of Franchise Operators, CAFO, Les Stewart, The Toronto Star, Ministry of Consumer and Commerical Services, Ministry of Consumer and Business Services, Ministry of Government and Consumer Services, Ministry of Government Services, Ontario, Arthur Wishart Act (Franchise Disclosure), 2000, Canada, State refuses to even listen, Hates publicity, Industry muscle, Intimidation, Old-fashioned idea that politicians are relevant, Opinions at odds with the Minister, Right to associate and right to harass, Right to associate but refuses to acknowledge, Thin-skinned politicians not doing their duty, Companies' Creditors Arrangement Act, CCAA, Intentional franchisor insolvency, Police intervention, Unfaithful servants, Ignore franchisee advocates and they’ll go away, Politician's news release, The Toronto Star, Ontario, Canada, 20011217 CBS NR

Canada Mr. Les Stewart Canadian Alliance of Franchise Operators, CAFO Risks: Canadian Imperial Bank of Commerce, CIBC, Franchise banker, Complaint letter to franchisors trade association, Code

on renovations. Franchisees had invested their life savings and years of 16 hour days. Approximately 150 outlets have been shuttered. Les Stewart of the Canadian Alliance of Franchise Operators (Tel

and punitive franchise agreements. "It's a first baby step, but it is as far as the government is willing to go," says Les Stewart of the Canadian Alliance of Franchise Operators. But, he noted

Alliance of Franchise Operators. Commercial Relations Minister Dave Tsubouchi “is just like one of the franchise hustlers,” said Stewart. “He’s selling an idea and there’s nothing in it.” Franchising