The equity extraction scheme that was exposed by 7-11 Employee Kurt McCord brings back painful memories for me. The scheme is eerily similar to what was perpetrated against Dunkin’ Donuts franchisees from 1998 thru 2008. In that period it is estimated that Dunkin’ Brands extracted over $100 million dollars of franchisee equity from hundreds of […]
Three Stories of Maine Franchise Owners or Franchisors Doing Business in Maine
Three Stories about Quiznos, Coffee News and Dunkin’ Donuts. Quiznos: Maine franchisees of the franchising firm that earlier this month filed for bankruptcy, failed miserably under a broken business model. Some are questioning what detriment there was to their state’s economy. Analyzing the sub sandwich chain’s past franchise disclosure documents shows there was approximately $5.4 […]
Maine’s House Approves Franchisee Protections!
Don Sneigowski of Blue MauMau reports: Maine’s House of Representatives on Monday passed the Small Business Protection Investment Act LD 1458 by a vote of 75 in support and 60 against. Franchise owners in Maine are pushing a law that they say will allow them to better hold onto their business equity. Under the act, […]
Support Maine franchise owners with these four basic protections
Ed Wolak, Chairman of the Maine Franchise Owners Association contributed the following letter to Bangor Daily News and it ran in the paper and online today March 11, 2014. By Ed Wolak, Special to the BDN Posted March 10, 2014, at 11:47 a.m. Last modified March 10, 2014, at 12:07 p.m. BDN The Maine Small Business Investment Protection […]
Big Whopper Economics
Want fast-food workers to get a raise? Let local restaurant owners form a union to fight their corporate masters. By Josh Freedman – Washington Monthly In August, Larry and Kathryn Baerns and their son, Christopher, filed court papers charging that the two new Steak ’n Shake restaurants they had just opened in the Denver area […]
Maine Small Business Investment Protection Act (LD1458) Fact Sheet
The Maine Small Business Investment Protection Act (LD1458) has Reported to the Maine House of Representatives. Below is a graphic that depicts the benefits of LD1458 and it’s goal to protect the equity of Mainers that invest in a franchise. Maine franchise owners need these basic protections so they can build, harvest and perpetuate the […]
Franchised Units Increase in Iowa 300% More than Adjacent States
The graphic below compares the growth of franchised Units in Iowa from 2004- 2007 to adjacent states and the nation. In 1994 Iowa passed a Franchise Practices act, the reaction from the IFA and Franchisors was to boycott Iowa, in an effort to show other states what could happen if you pass a Franchise Practice […]
Failure to Pass Franchise Protections 20 Years Ago Cost Maine More Franchised Units
In 1994, Legislative document 1916, or as some people remember it — The Franchise Practices Act, was shot down by Governor John R. McKernan, Jr. even after it passed both the Maine House of Representatives and the Maine Senate. Leonard Kovit, owner of 5 Meineke’s in Maine and New Hampshire in 1994, remembers the bill […]
Letter from Maine Franchise Owners Chairman Ed Wolak
February 21, 2014 Dear Maine Franchise Owners, I am writing to you as the Chairman of the Maine Franchise Owners Association “MFOA”. We represent Maine franchised small businesses. Most are owned and operated by Maine families. MFOA supports the Minority Report, Senator Patrick’s amendment to LD 1458 to strengthen franchising, not harm or limit it. […]
Franchisee Protections Exist Across the Maine Border in Canada
Five provinces in Canada have passed franchise disclosure and fair franchise relationship laws: Alberta, Manitoba, New Brunswick, Ontario, and Prince Edward Island. British Columbia is also considering franchise disclosure and franchise relationship legislation. In the United States, the Federal Trade Commission (FTC) requires the use of a Franchise Disclosure Document (FDD) in all 50 states […]