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California's AB 2305 Shows How to Get Real Standards in Franchising

Posted Mon, 2012-04-23 12:23 by michael webster

California lawmakers need to be aware of how much the Level Playing Field for Small Businesses Act, Assembly Bill 2305, will benefit the state’s consumers. The reason? The legal franchise model as it exists today allows franchisors loopholes to skirt their civic responsibilities. 

Fair Franchising Bill Will Create Jobs for California

Posted Mon, 2012-04-16 10:32 by michael webster

Californians need jobs.  Franchising has historically provided those jobs in the hotel, restaurant and service industry. Without a change which rewards franchisees as owners, risk capital will not be attracted to California. California will lose out on job creation, and its budget woes will be worsened if the Level Playing Field for Small Business Act of 2012 is not passed, Bill AB 2305. 

How to Sock It To You in Fees with Full Disclosure of Item 5

Posted Mon, 2012-04-09 12:21 by michael webster

You walk into your lawyer's office.  You want him to review your Franchise Disclosure Document. He has a new associate, who beckons you forth.

A Franchise Fable

Posted Wed, 2012-03-28 08:25 by michael webster

One fine day, a franchisor, an area developer, and some franchisees decided to build a franchise system together. They found many good locations and built a number of great units.

How to Spot 'Sold but Not Open' in the FDD

Posted Tue, 2012-03-20 23:29 by michael webster

One item of a franchisor's FDD Area Development is worth a serious look: how many locations have been sold but are not opened.

Tim Hortons Wins Battle, Losing War

Posted Fri, 2012-03-02 09:16 by michael webster

The result of a dismissed franchisee class action lawsuit victory is that franchisor Tim Hortons is losing a business war.  In a rare summary judgment motion., the reasons for the judgment, part 1 and part 2 can be read here, a judge dismissed the franchisee's class action. But Tim's will now struggle mightily to get same operator expansion as a result of this legal victory.

Negotiating Your Franchisee Rights

Posted Wed, 2012-01-04 00:40 by michael webster

Recently, I was asked: "If you could negotiate any terms up front, what would be the key ones?" Here is my general approach:

Should Every Franchisee Own Its Website?

Posted Sun, 2011-10-16 05:37 by michael webster

Social media and brand awareness creates unique problems for a franchise system, the well understood division of national and local advertising has to be revisited. One important question is, should every franchisee own it's own website?

Creating a Modern Franchisee Association

Posted Sat, 2011-07-02 23:22 by michael webster

A modern franchisee association is required in all franchise systems, especially when a franchisor seeks both the benefits of controlling franchisees as if employees, but resiles from the legal and tax liabililty that attaches to such control.

Game Theory, Strategy and Legislation

Posted Wed, 2011-04-06 14:07 by michael webster

Many years ago, I had the pleasure of teaching the Logic of Collective Action, by Mancur Olson, to a group of University of Waterloo students.