At last week’s work session for the Labor Commerce and Economic Development Committee, I was asked by a franchisee why were there so many people attending the work session from the side of the Franchisors? They had counted over 20 lobbyist, attorneys, representatives from the International Franchise Association, Maine Restaurant Association, Maine Innkeepers Association, McDonalds, and Dunkin’ Donuts that were there against the Maine Franchise Owners bill.
Yesterday I was speaking with Keith Miller, a Subway franchisee and Chairman of the Coalition of Franchisee Associations. Keith will be speaking next week at the Maine Franchise Owners Franchise Business Day & Legislative Meet & Greet. If you haven’t already registered please do so at your earliest convenience. For more information about the event or if you would like to register please click here.
Keith reminded me about the movie “A Bug’s Life” and in particular a scene when the Grasshopper’s Leader (similar to IFA leader Steve Caldeira), illustrated the importance of keeping the ants (franchisees) in line.
Watch the clip below, it illustrates why the IFA is putting up such a significant fight in Maine.
That is a very good question. Not so sure, why, but I will say that McDonalds and the Maine Restaurant Association are very close. Some say McDonalds has more influence at the Maine Restaurant Association than they have at the International Franchise Association. That is very considerable, because I know…Steve Caldeira and the IFA won’t say a word without running it past McDonalds Corporation first.
Rumor has it that Steve wants to run the National Restaurant Association some day.
The Maine Innkeepers Association and the Maine Restaurant Association are controlled by the same people…Dick Grotton & Gregory Dugal.
Dick Grotton is as old as Mount Katadin. They say he was around when Howdy Beefburgers first started, Howdy’s was owned by Bill Rosenberg, who started Dunkin’ Donuts.
Here is what Gregory Dugal of the Maine Innkeepers Association and Dick Grotton of the Maine Restaurant Association has to say about LD 1458:
The following is an update on legislation that was introduced in May of last year and was carried over to this short session of the 126th Maine Legislature. LD 1458 is entitled “An Act to Enact the Maine Small Business Investment Act.” This bill would create a body of franchise law in Maine Statute that currently does not exist. There are too many items in this bill to list but you can see for yourself if you go to http://www.mainelegislature.org/legis/bills/display_ps.asp?ld=1458&PID=1456&snum=126 and click on the .pdf file. Sensing that the bill was too far reaching, the supporters of the bill amended it and presented it to the Labor, Commerce, Research and Economic Development Committee last Thursday. In our view the provisions are still very onerous. The Maine Restaurant Association is opposed to this legislation.
We understand and appreciate that there are two sides to this issue. However, the Board of Directors and staff believe that these contracts are made in good faith between franchisors and franchisees and that the State of Maine should not be involved in business disputes. We also believe that most franchisees are satisfied with their agreements and that this would be a big change for a small few who are not. This legislation could have serious implications for the future of franchising in Maine. Many large franchisors have said they will not expand into Maine if this legislation moves forward nor will current Maine franchisors expand. There is also the danger of franchisors converting their franchises into company stores which could potentially hurt existing franchisees. Whatever your take is on this legislation, the final work session in the committee will be held on Thursday January 23 at 1pm. You can contact members of the committee by going to this link and clicking on their name.
http://www.maine.gov/legis/house/jt_com/lce.htm Thank you for your consideration on this very important matter.
Greg Dugal, President and CEO, The Maine Restaurant Association
Dick Grotton, Past President and CEO and Legislative Consultant
Why is the Maine Restaurant Association and the Maine Innkeepers Association against the bill in Maine?