Franchise Investigations

We will soon have minutes of this meeting, and our overall methods and goals.

Richard and Paul sparred about Zarco's case against Bodorian, but we all agreed that with more franchise preparation companies, templates, and public access, it gets harder to tell from a paper review of the documents what is legitimate and what has been simply lifted from a legitimate business.

Investigations are getting harder and not easier with public access. 

One problem we face is turning around the investigation process so that prospects do not try to use our services just before closing.

We have to make the point that: Pre-purchase investigation not only teaches you about the actual franchise you are interested in, but franchising traps in general.

For example, Richard brought up an interesting case in which a) the franchisee sold contracts to customers that had a monthly incurring revenue, but b) the franchisor "collected and remitted" that revenue.  Strangely enough, the top franchisee in that system hasn't seen any residuals!

This type of collection scheme deserves a;

You might be a Franwad, if you let your franchisor collect all your money and have to ask "please, sir, may I have some more?"
You just might be a Franwad, if your franchisor can scoop your bank account. 

The next meeting, unfortunately for my wine budget, may be in Toronto.

It will be hard to match Richard's pillaging of the local wine cellars - but I understand that the founders of any joint endeavor are to expected to contribute excess liquid capital.

Michael Webster PhD LLB
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