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Coffee Beanery UFOC

22 Comments

Lets hide and protect some people...

Surely, there are some items that are not meeting the rules. Who are all the folks selling the deals again? Anyone missing?

CB is good example of IFA Influence and Weak UFOC regulation

The CB is a good example of IFA Influence and weak UFOC regulation that permits franchisors to sell unviable business plans to the public because the rate of failure of first-generation franchisees can be obscured in the UFOC's from both government and prospective franchisees. There is apparently no rate of failure of a franchise at which the SBA will deny the guarantee of a loan.

The State of Maryland rescinded CB and the State of Illinois forced them into a withdrawal but they are out there on the SBA Registry eligible for "quickie" guaranteed loans and selling new prospects even today to try to stay afloat.

Ms. Shaw is confident and does PR tours to promote business for the State of Michigan. She apparently was not surprised at the result of the arbitration with the Wilshams and feels safe in the arms of the UFOC's of the states in which the CB remains registered. She knows that experience indicates that judges rarely, if ever, reverse arbitration awards.

Will the light of the hearings in Congress concerning arbitration make a difference? Or, was this just window wash for the Congress who has to know the extent of the "stealing" that goes on in franchising and how arbitration enables it?

CB UFOC

Don't count the Welshans down and out. Maryland can only save face at this point by imposing some kind of sanctions for CB violating The Consent Order.

The State of Maryland can at this point do an "unwind" this will take away CB's ability to deny the charges and force them to plead guilty. The arbitration award at that point would be vacated.

RichardSolomon's picture

GIMME A BREAK, PLEASE

Do you really expect congressmen to take time off  from their own stealing to take notice of the stealing by others? 

Richard Solomon
www.FranchiseRemedies.com

A BREAK for Richard

Most attorneys are cynical by nature because they are fallen idealists who once loved the law and its purity and even the concept of justice for all before they entered law school and graduated into the real world of law in politics and the marketplace.

It is true that most human beings don't want justice but mercy and that justice is in the eyes of the beholder but it is the citizen's respect for the law that keeps most of us from running red lights and eating each other.

You are allowed to be cynical and to still love the law, Richard, but if citizens become cynical about their elected officials and don't try to make government better by insisting that The Constitution and the Bill of Rights belong to all of the people, what will happen to our demecratic Republic and the concept of liberty and justice for all?

RichardSolomon's picture

WHEN CITIZENS BECOME CYNICAL

When citizens become cynical and no longer trust what their government does, and stop thinking that they can rely upon some notion of regulated investment safety, fewer of them will be fleeced by unscrupulous franchise companies.

If God did not intend that there be shearing, She would not have created sheep! 

Richard Solomon
www.FranchiseRemedies.com

michael webster's picture

Cynicism versus Pragmatic Skepticism

Richard will speak for himself.

But I can assure you that many lawyers, while pragmatists and skeptical, are not cynical.

Many would call my quest with the AAFD for Fair Franchising Standards quixotic, and the critics may prove to be right.

On the other hand, I practice a resolute brand of skepticism -in which urge to telling confirming stories that sound nice is crushed.  That doesn't make me cynical -it does put me methodologically at odds with people like Dale- but it may help prospective franchisees when they employ me.

Michael Webster PhD LLB
Misleading Advertising Law

Cynicism

The only way ZEES will be recognized is to stand in the face of the IFA and make a stand.

The IFA is getting ready to have thier annual Appreciation Day. This is when they do the little march over to the Capitol.

Every ZEE who can get there should show and let Congress know that the IFA does not have our best interests at heart.

Not until we make a stand will we be heard

FranSynergy's picture

Results over Methods

The power of accurate observation is commonly called cynicism by those who have not got it.

George Bernard Shaw (1856 - 1950)  

"it does put me methodologically at odds with people like Dale" 

We may be 'methodologically' at odds more often than not - but at the end of the day, I'd like to think that we can agree that RESULTS are far more important than METHODS. 

Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
www.fransynergy.com

michael webster's picture

Why Dale and I will usually Disagree

Dale wrote: "We may be 'methodologically' at odds more often than not - but at the end of the day, I'd like to think that we can agree that RESULTS are far more important than METHODS. "

Dale is a postive thinker promoter -which in general, I am ambivalent about.  Which doesn't explain why we are disagreement many times. Here is the reason.

I focus on due diligence plans -what to do in the first several years of the franchise, if you are going to buy it- I reject postive thinking as a solution.  You need to know your rights to bargain effectively during those first years.

In my view, you need to focus on what could go wrong once you have signed the contract, figured out a response, and perhaps have an early exit strategy.

Dale focusses on postive thinking -which I reject because it is during the first couple of years that you need to be hypervigilant with respect to the franchisor's actions.

Michael Webster PhD LLB
Misleading Advertising Law

FuwaFuwaUsagi's picture

Arrrggghhhh....

Dale writes:

I'd like to think that we can agree that RESULTS are far more important than METHODS.

My reply:

I can only hope and pray a logical man like Mr. Webster discards this out of hand.   Results matter to the happenstance recipient.  But they are only SIGNIFICANT if they are replicable via a rigorous methodology.

Stated differently what matters is the reliability of a result, which is replicated from a formal strategy implemented by methods.  If your RESULTS can be predicted based on  random nature, then the result is of no importance except to the random recipient.

I could care less about a RESULT if there is no method in place to reliably duplicate it.   Show me results that can be replicated via a methodology that beat statistical probability and offers a reward that is commensurate with the risk ensued and I'll get interested.  Anything else is simply a form of business voodoo and has as much merit as one of Sylvia Browne's postulations.

FuwaFuwaUsagi

FranSynergy's picture

Michael is Correct!

“For myself I am an optimist - it does not seem to be
much use being anything else”
  ~Winston Churchill" 

Yes, Michael is correct - I do consider myself to be a "Positive Thinker", I've had many opportunities in life to learn “If you think about disaster, you will get it. Brood about death and you hasten your demise. Think positively and masterfully, with confidence and faith, and life becomes more secure, more fraught with action, richer in achievement and experience.

Yes, Michael is correct - "I have been considered a Promoter".  I believe that each and every franchisee must learn to how to "Be a Promoter".  The basic purpose of a business is to ATTRACT, retain and grow customers.  Attract is the first step and it requires that you PROMOTE.  Make every employee of your franchise a PROMOTER!

Yes, Michael is correct - candidates and franchisees should focus on what could go wrong once you have signed the contract, figure out a response and develop an exit strategy.  That is the why each of these items are addressed with each candidate or subscriber with whom FranSynergy works with.  The difference is that you take a purely legal approach and we take an operational approach which includes legal and accounting review.

Proper planning and preparation is the very thing that allows one to Think Positively.

Henry Ford said: "Before everything else, getting ready is the key to success".

Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
www.fransynergy.com

RichardSolomon's picture

AMEN

The random result is called a  crap shoot.  

Richard Solomon
www.FranchiseRemedies.com

FranSynergy's picture

Methods & Results

I did not say that METHODOLOGY was unimportant, or that the result could be left to chance.  I did say that the RESULT is far more important that the specific methodology used to achieve the RESULT.  There are many ways to achieve a specific goal or objective, thus the truth in the saying "There are many ways to skin a cat".

I agree 100% that the reliability of the methods used to achieve a specified result must be duplicatable.  The methods which one uses must allow one to achieve an absolutely predictable result each and every time.  That does not mean that two people with different methodologies can not achieve a very similiar end result with a very similiar percentage of success.

Statistical Probability is important, but statistical probability can not be determined from the UFOC and the Franchise Agreement alone.  A franchise candidate or franchisee or any business owner is not looking to become a statistic, they are looking to become successful in business and to develop a plan of action, a strategic business plan that will all but insure their success in a given business.  They are all looking to maximize their win, and should be looking to limit the loss.  We've all failed at doing things which others have succeeded in doing, and we've all succeeded in doing things which others have failed at doing.

Selecting the right business opportunity, and being successful in that opporutunity goes far beyond a legal review of the documents involved.  The Franchise Agreement is important - it is the framework which will govern the relationship between franchisee and franchisor.  It only provides the rules by which the game will be played, it does not provide the strategy for winning.  If one has a desire to win, they need to have a desire to win, layout rules which will allow them to win, and have a strategy to win, take the actions necessary to win, and yes they must believe that they can win.  But the mere act of believing you can win without properly preparing to win is FOOLISH.

Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
www.fransynergy.com

FuwaFuwaUsagi's picture

Dale writes:  I did say

Dale writes:

 I did say that the RESULT is far more important that the specific methodology used to achieve the RESULT.

My reply:

I understood that.   And I am saying the result is inconsequential except to the direct recipient of the result IF there is not a repeatable methodology to reproduce said result.   Ergo the RESULT is inconsequential.  This is why Las Vegas exists.  People can not understand random chance or happenstance circumstance. 

FuwaFuwaUsagi

Never underestimate the power of stupid people in large numbers" 

RichardSolomon's picture

THE CRITICAL DIFFERENCE

When it comes to investing in franchises, the difference between an optimist and a pessimist is experience. I forgot who said that a long time ago. Sorry. Maybe it was one of the seven last things spoken by Our Savior on the cross. Religion, as you might easily recognize, was the first franchise. 

Richard Solomon
www.FranchiseRemedies.com

michael webster's picture

The Black Swan and Due Diligence

Fuwa and Richard are both making points that have been explored by Nassim Taleb, in Fooled By Randomness and the Black Swan.

Coincidently, I wrote a small article on the Black Swan and Due Diligence, two or three days ago.

Taleb stresses that it is a) very difficult to evaluate the other possible worlds that our decision may have landed us in, but b) it absolutely required to do so, if we are to evolve past our current infatuation with magical thinking.

Michael Webster PhD LLB
Misleading Advertising Law

FranSynergy's picture

A Pessimist is ...

Richard here's one you will like: "A Pessimist is a man who thinks all women are bad, an Optimist is one who hopes they are!" so said Chauncy Depew.

G.B. Stern put it this way: "Both Optimist and Pessimist contribute to our society, the Optimist invents the airplane, the pessisit invents the parachute."

Rene Descartes asked: "An Optimist may see light where there is none, but why must the pessimist run to blow it out?". 

Based on the words of Albert Schweitzer I am neither an optimist or a pessimist, he said: "An Optimist sees green light everywhere, while a a Pessimist only sees the stoplight.  The truly wise are colorblind".

Perhaps I'm an Idealist, for it has been said: “An optimist is a person who sees only the lights in the picture, whereas a pessimist sees only the shadows. An idealist, however, is one who sees the light and the shadows, but in addition sees something else: the possibility of changing the picture, of making the lights prevail over the shadows.

I'd prefer to be seen as neither a Pessimist nor an Optimist, for the Pessimist only complains about the wind, the Optimist expects the wind to change, but at the end of the day what is needed is a realist who knows how to adjust his sails.

Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
www.fransynergy.com

Tinker's picture

Like everything else in life...

Franchising requires a balanced position.  I'm reminded of..... 

One twin was overly pessimistic while the other twin was overly optimistic. The parents, hoping to balance out their twin sons' personalities took them to a therapist who after many frustrating therapy sessions tried a radical method.

She locked the pessimistic twin in a room filled with every toy and game imaginable to demonstrate to the boy the fun that life has for him.

At the same time, she locked the optimistic twin in a room filled with horse manure to demonstrate to the boy that life can be difficult.

After several hours, the therapist went to check on the boys to see the results of this radical test.

She opened the door to the room with the pessimistic twin and there he sat in the corner, by himself with not one toy touched. Frustrated, the therapist asked him why on earth he didn't take advantage of all the toys and games he had at his disposal, the pessimistic twin just sighed and whined, "If I play with the toys & games, they'll just break and then I won't have anything else to play with."

Hoping for better results with the optimistic twin, she hurried to his room and slung open the door. To her shock, there was the optimistic twin on his hands and knees digging through all the horse manure as fast as his arms could go. "What on earth are you doing?" she asked. He smiled from ear to ear and said, "with all this s**t in here, there's gotta be a pony somewhere!" 

Note:  I have twin granddaughters and can personally attest to this drastic  range in personalities.

Lisha

Rhino Super Center

FuwaFuwaUsagi's picture

Barrister Webster writes...

The good barrister writes:

if we are to evolve past our current infatuation with magical thinking.

My reply: 

ROTFLMAO!!!!    Of gosh that is perfect.  "Magical thinking" - I love it.   

Nassin Taleb was on Bob Brinker's show about two weeks ago.  It was interesting. 

FuwaFuwaUsagi

 

RichardSolomon's picture

THE BEST SEARCH STRING

A better search string is Franchise Fraud. You don't find optimists there. 

Richard Solomon
www.FranchiseRemedies.com

RichardSolomon's picture

MAGICAL THINKING

That's perfect.

In this context, it is a portrayal of what currently passes for franchise investment due diligence much as the lyrics of that timeless classic song "Oh Lord, Won't You Buy Me A Mercedes Benz". 

Richard Solomon
www.FranchiseRemedies.com