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Lawyers threaten to get Code of Ethics complaint letter withdrawn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
Politicizing the public service
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
