As franchise owners, we all sign franchise agreements that set the terms and conditions of our business, and the relationship with our franchisor. Most of those franchise agreements contain a condition that you will follow the then current Operations Manual. While it is understandable that the Ops Manual must change, a new sandwich is introduced, […]
Franchisee Sues for Lack of Fair Dealing, Marriott Settles
BlueMauMau reports that It seems that not all is clean and good at Marriott. CNBC explores the Marriott Empire in its hour-long “Behind the Closed Doors of Marriott.” In the three minute video clip* below, one large franchise owner explains his lawsuit regarding legal traps, bad faith, fraud, breach of contract and hidden rebates to […]
Equity Extraction Schemes Live On in Franchising
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 […]
Re/Max Raises Dues for Agents, and Franchisees
Move bolsters the franchisor’s 2 largest revenue streams On Jan. 1, Re/Max increased the annual dues its agents in the U.S. and Canada pay to affiliate with the brand and the monthly per-agent fees affiliated brokerages in U.S. company-owned master franchise regions pay the franchisor. After holding steady at $390 for 2011 through 2013, Re/Max […]
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, […]
Calling All Maine Franchise Owners The Maine House Vote is Today!
The time for action has come. The Maine Small Business Investment Protection Act (LD1458) is scheduled to be voted on by the Maine House of Representatives this morning! We support the Minority Report, Senator Patrick’s amendment to LD1458 to strengthen franchising, not harm or limit it. We all make our living in franchising; damaging it […]
Franchisees Leave Coffee News in Mass Exodus
Don Sniegowski at Blue MauMau reports that Coffee News of Bangor, Maine is experiencing a free fall in the number of its franchise owners. The chain has declined in franchise units by 31 percent from 2008 to 2012, according to its latest Franchise Disclosure Document. Located in 40 states, franchise owners pay $8,500 in upfront […]
Franchise Owners Beware: Despite The Myths, Franchises Can Fail
Bruce Kennedy, Benzinga Staff Writer reports that the recent Chapter 11 filings of two national restaurant chains, Sbarro and Quiznos, are drawing new focus on the opportunities and challenges faced by franchises. U.S. Census Bureau data from 2007 showed franchise businesses employed over 58 million U.S. residents, while bringing in revenues, sales, shipments or receipts of over $7.6 billion. And […]
Quiznos Goes Bankrupt My Three Observations and One Possible Salvation
Quiznos filed for bankruptcy late last week. Interesting enough the Quiznos franchise chains troubles at a time when similar sandwich franchises like Subway and others seem to be thriving. Serious flaws and seemingly fraudulent practices in the Quiznos’ business model led to the company’s demise. Here are my basic three observations for the chains seemingly […]
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 […]