The Marriage: The Wedding Day
Big Franchising: aligned self-interests (not a conspiracy)
- Alpha Male attorney
- Attempt to pull down website/weblog/wiki
- Contempt for democracy
- Dire warnings unsubstantiated with data
- Franchise consultant goes AWOL
- Frenzied lobbying
- Hates publicity
- Ignore advocates and they’ll go away
- Investor confidence crushed, no trust or buying
- Lawyers threaten to get Code of Ethics complaint letter withdrawn
- No duty of care to public
- Signs that potential franchisees are nervous and aren’t buying
- State sanction
- Symbiotic relationships (industry, banks, lawyers)
- Uniform international franchise law
- World Franchise Council
Contract terms: one-sided, take-it or leave-it
- Coerced waiver of jury trial
- Coerced waiver of legal rights, self
- Coerced waiver of legal rights, self & descendants
- Coerced waiver of punitive damages
- Cross-default provisions (lose one store, you lose them all)
- Disputes heard on franchisor’s home turf
- Entire agreement clauses
- Immunity from being sued
- Indemnification provisions
- Integration clauses
- Must arbitrate disputes, cannot litigate
- Must lease, not buy, land and/or building
- Must pay future royalties, even when the franchise fails (liquidated damages)
- Must use franchisor's credit card processing company
- Must work only as a franchisee
- New buyer must sign current, often less favorable, contract
- Non-compete restrictions
- Right of first refusal
- Stop territorial protection at contract renewal
- Waiver of legal rights
- Within the four corners of the contract
Contracts give them a license to lie, cheat & steal
- Arbitration decision can't be appealed
- Basic legal standards inapplicable to franchisees
- Breach of contract
- Can’t sue
- Can’t talk to media
- Franchise agreements create a License to Lie, Cheat & Steal
- Franchise agreements: Masterpieces of deceptive wording and artful omission
- Material facts were not disclosed
- Materially misleading information
- Misrepresentations
- Negligent misrepresentation
- Personal assets pledged to cover business
- Renewal of contract denied
- Renewing contract much tougher
- Sign away human rights and legal remedies
- Without conscience
Governments serve corporate power
- Civil service refuses to answer request for information
- Democracy: 4 wolves and 1 sheep decide what's for dinner
- Duty to Sovereign
- Exempt from Ontario franchise law obligations
- Federal insolvency laws used to shirk legal claims
- Franchisor association not trusted by politicians
- Franchisors push for weak national franchise law
- Government as system’s ultimate liar
- House Debates, Legislative Assembly of Ontario, Canada
- Industry in disrepute
- Industry likes this regulator
- Influence-peddling
- Ministry of Government and Consumer Services, Ontario
- Money influencing public decision-making
- National regulator
- Police dump cases because of budget constraints
- Political contributions by franchisees
- Political contributions by franchisors
- Politicians helping their friends
- Politician's news release
- Politicians refuses to answer request for information
- Politics is vulnerable to expert fraud because it is a credence good
- Private Members’ Bill
- Restructuring legislation is deficient
- State refuses to even listen
- Sue the regulator
- Thin-skinned politicians not doing their duty
- Threats toward politicians by franchisors
- U.S. Securities and Exchange Commission, SEC
- Undue influence
- Veterans Transition Franchise Initiative, VetFran
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