WikidFranchise additions for the week of May 25, 2009:
Note: Each article mentions a set of risks in the footer area. These are key in studying franchising. There are over 1200 inherent risks mentioned in the archives of WikidFranchise and the list grows. We have simplified your search by linking the search string for this week’s additions underneath each article. Don’t be amazed at how many of these issues appear in articles of franchises you’ve never heard of and some of those you would never suspect.
Quiznos Launches Franchisee Microloan Initiative
Quizno
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Appraisals were inflated, Debt traps, Forced to spend on renovations, Franchisees are frequently the canary in the fraud mine, Franchisor financing: faster in, out & resold (serial bankrupts), Franchisor picks up stores for a song, Franchisor takes franchisee store, resells to new dealer, Franchisor takes franchisee stores, Franchisor takes store and converts to corporate, Fraud financed by rigged appraisals used equipment & leaseholds, House negro, Indentured servants, Only opening new stores for the quick cash grab, Predatory franchising makes more money selling than operating system, Shills, Sincere ignorance, Sold for as much as much as they can get (next-to worthless), Sunk costs: franchisee's trapped capital keeps them chained to treadmill, System is collapsing
United States
Quiznos To Renegotiate Franchisee Leases
Quiznos
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Eviction cheaper and faster than termination, Franchisee gets cents, franchisor many $, Franchisor was once a franchisee, Head lease advantage, Infamous trademark system, Landlord accepts much less now or franchisor pushes franchisee and he gets 0%, Lease controlled by franchisor, Lease margins are an important source of franchisor revenue, Shills, Sincerity, Sticking the knife in 6 inches and pulling it out 2 is not much helpSystem is collapsing, Why franchisors sublease to franchisees
United States
What you should know about Kleenmaid
Kleenmaid
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Appraisals were inflated, Criminal charges , Deceit, Franchise business model perfectly suited to enable massive fraud, Franchisees are pawns in insolvency flipTrading when insolvent, Unsecured creditors get next to nothing, When the franchisor tanks, so does the franchisee
Australia
Millionaire 'strangled gay lover' to be with younger man
Lenard's
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Envy, Murder
Australia
Claim Kleenmaid money used for boat
Kleenmaid
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All in the family, Corporate governance , Different deals for different dealers, Excuse du jour, Franchise business model perfectly suited to enable massive fraud, Intentional franchisor insolvency creates huge fees for legal, accounting, consulting firms, Outrageous fees, Pawns in a game they can't win, Sue the accountant, Sue the lawyer, Supplier kickbacks
United States
GM to drop 1,100 dealers
General Motors, Chrysle
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Auto dealers did not help strengthen general franchise law, Bankruptcy, Restructuring is used to cull dealers
United States
Deaths
Ben & Jerry's
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Death
Canada
No Eggspectations
Eggspectations
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Food criticism
United States
Previous Weekly Logs:
20090608 Weekly Log
20090525 Weekly Log
20090518 Weekly Log
20090511 Weekly Log
20090504 Weekly Log
20090427 Weekly Log
20090420 Weekly Log
20090413 Weekly Log
20090406 Weekly Log
20090330 Weekly Log
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