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  • Shay Resigns as IFA CEO and President   11 min 4 sec ago

    about a franchisor. Their answer was pretty much "yeah, you and everyone else". They look at 6% of ALL issues brought forth to them: consumer, franchise, antitrust. Of the 6%, they pursue less than 2%. Usually around oligopolies, monopolies...big issues, not little franchise issues.

    Good luck with PACs, legislative reform, and having the gov't on your side.

    Courts uphold that the most sacred right that people have in this country is the right to privately contract. You do so, therefore, at your own risk.

    Before you enter a contract, you need a lawyer, not a PAC, not an association of fairness. You need to protect your own rear. That's well founded in law.

  • Shay Resigns as IFA CEO and President   44 min 22 sec ago

    to get gov't relief, maybe a private right of action under FTC law is useless. Congress will not act or reform, to protect franchisees. Be friggin' serious.

    The bullcrap that is the AAFD and its leadership, the CFA, and all these activists groups gets nothing accomplished.

    Franchisees need to take care of their own matters. Their own independent franchise groups need to hire a lawyer that can beat the franchisor into submission and sue the pants of the franchisor if needed.

    The only solution to enforce franchisee rights is a well funded litigation biggy bank and an SOB smart lawyer to represent their specific issues.

    These associations are all useless for the franchisee.

  • Dunkin’ Donuts Grows in 2009   49 min 47 sec ago

    Kevin McKenna seems to be looking a little lopsided at Dunkin and not only based on these numbers. Dunkin grew buy over 170 shops in the US alone, and Starbucks CLOSED hundreds upon hindreds of shops.

    Given the huge hit to the entire sector and the facts that MAJOR competitors are shrinking, I'd say that Dunkin'd growth is pretty remarkable.

    I and most DDIFO members I know do not share Kevin's personal opinion. We live in the economic sales climate and we understand just how big it is to grow at all. BTW--our EC sales are UP year end 2009 over 2008. Yes, 2008 sucked, but EC sales are up and up is up.

  • Shay Resigns as IFA CEO and President   2 hours 6 min ago

    Michael,

    I am in total agreement that independent trade associations and franchisee associations "have to step to the plate and discuss legislative issues as a group".  The maddening part of it all is that if franchisees would step up and form a PAC, then contribute to it religiously in reasonable numbers, the power that it could wield would be of great significance.  I also agree that to date, "franchisees do not have a body that currently represents their collective best interests", with the notable exception of the fledgling Coalition of Franchisee Associations (CFA).  It is a simple and undeniable fact that often times the interests of the franchisee and franchisor are one in the same when it comes to small business legislation.  The big problem for franchisees is that when those interests do not align, we have no organization that comes close to being able to influence legislation to the extent the IFA can.

  • Worldwide Online Printing Franchisor Collapse   4 hours 47 min ago

    The Franchise Council of Australia list for Franchise of the Year contains some of the most criticized systems in Australia.  I suspect franchisors are now hoping like hell they don't win. And besides, who really wants a limp wristed fishy handshake and $50 trophy.

    The problem quality franchising faces is that a sick side of human nature makes taking advantage of the ability to abuse far too enticing for most.  Some franchisors walk the line and step over occasionally while many simply live where good franchising does not exist.

    Australian franchising is dominated by lousy or dishonest franchisors.  Not all the franchise systems listed are known FranWhacks and/or deliberately designed/warped systems that drain the gullible investor but one can presume that most are or they would not be on this list;

    Australia’s Dangerous and Potentially Dangerous Franchises.

    There are notoriously great systems but they aren't on that list.

    The associates listed are mostly those that promote the myths of franchising and perpetuate the growth in cons to fatten their pockets. Worldwide Online Printing doesn't rate at either end of the scale.

  • Dunkin’ Donuts Grows in 2009   7 hours 52 min ago

    More numbers, figures and tables. Oh my!

    Mike Dempsey of Nation's Restaurant News published an article on Tuesday that has just caught my attention— same-store sales for publicly traded chains. Quick service restaurants, a sector that Dunkin' belongs to, took the biggest dip of the various restaurant sectors, with an average same-store sales in Q4 that were -4.7%. Dempsey states:

    The segment finally started to take some hits from the recession.

     
     
    Same-store sales
    Brand

    Quarter
    Ends

    Year ago
    % change

    Tim Hortons, US Jan 3 -0.1%
    Krispy Kreme Nov 1 -1.3
    Starbucks Dec 27 -9.0

    As far as other restaurant sectors, some of the worst performing franchise chains were Ruth's Chris steakhouse, Arby's and Denny's. Ouch! Come to think of it, I have recently started to hear murmurings from Arby's and Denny's franchisees. Now I see the numbers behind the pain.

    But that's a story for another day.

  • Four Likely Franchisor IPOs for 2010   9 hours 46 min ago

    Coldstone - sure why not sell the public on this "concept".  High labor costs, high turnover, and "fun" make this a big winner for the investing public.

    Dunkin -  try to unwind the securitization issues to borrow money from the public to expand.  Who is the franchisor again?

    Pinkberry - right,  a franchise concept in an industry littered with historical failure.  I cannot believe its yogurt!

    HD - please, put this "icon" to rest already.  Even Richard Solomon wouldn't drive one of these pigs.

  • Shay Resigns as IFA CEO and President   9 hours 58 min ago

    Mufflerman writes: " However, a great majority of the legislative efforts that they have been actively and effectively lobbying for (or against) involve positions that coincide with what's best for franchisees."

    I have to disagree here - franchisees do not have a body that currently represents their collective best interests, publicly advocates for that view, uses PAC money, and engages in meaningful public and social debate about what is best for franchisees.  

    Mufflerman may be right that the IFA's lobbying was congruent with franchisee interests, although I personally doubt it, but Mufflerman can state that he knows what is the franchisee's collective interests because we don't have a social body to determine that.

    It is fair that Mufflerman states that the IFA's positions on certain bills were consistent with his own, or his own franchisee's association views, but in absence of any collective viewpoint or mechanism that could be called the "franchisee view" it is meaningless to talk about "what's best for franchisees".

    Mufflerman and I know each other very well, but individual franchisee trade associations have to step to the plate and discuss legislative issues as group -otherwise the IFA viewpoint dominates.

    Employee trade associations did not become powerful by remaining silent about social issues, and neither should franchisee associations.

  • Wesfarmers To Acquire Bakers Delight?   10 hours 28 min ago

    I feel sorry for the people that went into this or any business and lost money but that is a sad fact of life some will fail for lots of reasons and no discussion will change anything infact it just keeps festering inside people and I have been there a long time ago but I moved on and here I am. And the question was why I invested in real estate I thought that was obvious I can sit under a tree and collect my rent with out much input when I am sick in bed I still get my rent when I am overseas on holidays yes I even collect it then.

  • Worldwide Online Printing Franchisor Collapse   10 hours 28 min ago

    Want to know more about franchising with Australia's fastest growing print franchise? Watch the Franchise Council of Australia (FCA) Franchisee of the Year 2007 talk about franchising with Worldwid...

    http://www.youtube.com/watch?v=52EXMAVkt_4

  • Brad Sugars Come On Down   12 hours 37 min ago

    Phil Ciniglio also Chairman of the Board and Director of "First Class Accounts" and "The Touch Up Guys" Franchises. http://www.firstclassaccounts.com.au/index.php?page=board ,what hope will they have with the Guru at the table.

  • Shay Resigns as IFA CEO and President   15 hours 19 min ago

    Don,

    Great crossruff.

    I think you'd find most local Kinsmen or Optimist clubs have a tacitly-approved chain of executives working their way up to the "head honcho" title. While there are annual elections, they're mostly in name-only. Every group has their own history, culture and idiosyncracies that need to be trained, practiced and carried-on to maintain the esprit de corps and other good OB (organizational behaviour) objectives..

    Each cub scout "sixer" knows you've got to plan ahead, unless Kaos reigns supreme.

  • Shay Resigns as IFA CEO and President   15 hours 57 min ago

    Chris I take your point on what the IFA does for franchising, however, I see their performance in terms of balance.  Whatever IFA does for franchising is far outweighed by the myths it perpetuates.

    IFA is responsible for a great deal of what is wrong in franchising.  Sure franchisees are suckers to fall for the rubbish IFA promote and hand to franchisors to continue to promote but there is some history here of a financial tsunami pushing an aura of safety that just has and does not exist.  It’s self interested ‘good works’ do not make up for the evil.

    IFA may have come clean on some obvious issues but the message they push has not really changed.

    For IFA to suggest it represents franchisees and franchisors is akin to one lawyer representing plaintiff and defendant. It is such an outrageous lie that it sets IFA up to have zero credibility.

    I don’t have time at the moment to find some of the recent IFA support of the Franchise Council of Australia’s stance that there are no systemic problems in franchising.

    Who really believes the ‘international’ bulldust? The governments already paid for where such ‘international’ influence is merely set to support the backroom deals and allow a government minister to say; ‘not my fault, they told me so and they sound like they would know’.

  • Shay Resigns as IFA CEO and President   17 hours 39 min ago

    The Washington Post published today (Thursday), a day after Blue MauMau put up the article above, that the National Retail Federation has recruited Matt Shay to replace its CEO, who has been wanting to retire for some time.

    Shay will replace NRF chief executive Tracy Mullin, who is retiring after 17 years in that post. Mullin announced her retirement last spring amid plans for the NRF to merge with another trade group, the Retail Industry Leaders Association. But the union was called off over the summer after an initial review. - WaPo

    The NRF shows how succession planning can be done, even when talent cannot be bubbled up from inside or a dropped merger messes up plans. This time the NRF hit it just right. The federation announced that its old CEO is retiring, and simultaneously annointed its new leader. What trade association members want to hear when a chief executive departs is the bad news first, followed immediately by the new.  "The king is dead. [Jaws drop]. Long live the (new) king!!" (Thunderous applause!)

    It is a healthy sign when a board of directors is strong enough to carry out one of its most fundamental jobs, making sure there is a leadership successor.

    In the hidden world of the board room, it is a rare outward sign of possible cronyism or a weak board when it has not carried out this function. A vacuum of leadership in a trade association can be disconcerting to its membership. It can be an incredible opportunity for competitors.

    The IFA announced yesterday that it has hired an executive search firm—probably with "urgent", "critical" and "HELP!" stamped all over the job description packet—to find a suitable candidate to replace its outgoing CEO, Matt Shay. He has given his month notice, April 16.

  • Dealers Association Sues PMD for Fraud   19 hours 4 sec ago

    Looks like PMD management is going to try to spam this BMM message board as well.

  • Dealers Association Sues PMD for Fraud   19 hours 55 sec ago

    Nice fake post, PMD management. You guys really have no class or ethics at all.

  • Dealers Association Sues PMD for Fraud   20 hours 44 min ago

    Let me remind those who post comments to please remember copyright laws. Commenters cannot copy whole articles from trade journals and paste them here in their entirety. Fair usage of published material requires posters to comment on why they think a selection is important, copy a few sentences from the piece, and then put a URL or hyperlink where readers can read the original article in its entirety.

    The format in the post above is now fine.

    Publishers and authors appreciate the increased traffic to their sites from others using short quotes. It advertises their articles. But they don't appreciate spending time and money to investigate the news, and then have someone publish their entire article elsewhere for free -- even when their magazine is mentioned.

  • Dealers Association Sues PMD for Fraud   21 hours 32 min ago

    Barbara Clark has made over $150K every year in the business in a small division 2 territory. In fact, she stated numerous times at national conferences that she was so lucky to be apart of PMD. She said that this was the greatest opportunity she had ever been apart of. She thanked Jeff and Joe numerous times for everything they did for her. Now she is suing PMD for fraud?

  • Dealers Association Sues PMD for Fraud   21 hours 36 min ago

    Rick Dooley at the national sales conference in November stated from the podium that he had made over $120K through October for the year. How can he claim fraud? He could not make that money doing anything else!

  • Shay Resigns as IFA CEO and President   23 hours 19 min ago

    I'm not sure why Insightful is dissing Jerry when they look like they both make the same point that the IFA is not much more than a dues collecting money machine that often competes with the businesses of its supplier members.

    When it comes to Mr. Wilkerson, Mr. Insightful apparently takes a lesson from British screenwriter Tom Stoppard, who wrote: "I agree with everything you say, but I would attack to the death your right to say it."

  • Shay Resigns as IFA CEO and President   23 hours 26 min ago

    My first impression of Matt Shay on a recent conference call, was that he was a gentleman.

    That's always a good start.

    The IFA, under his leadership, finally got around to discussing and posting some of the false franchise success rate numbers, as Michael Webster pointed out.

    However, that was done becase some heat was being put on. The IFA never discusses anything negative about the business model of franchising. That in itself, is crazy in this age of social media, and instant news and views.

    As the IFA continues to learn and attempt to get involved in social media, they will HAVE TO start becoming more transparent and more forthcoming about the real risks involved in franchise ownership.

    Maybe Matt was actually starting to get dizzy from all the spin.

    The Franchise King®

  • Shay Resigns as IFA CEO and President   23 hours 31 min ago

    ...does Jerry Wilkerson's opinion matter? Jerry served the IFA during the days of old and when there wasn't franchisee integration into the organization. Not defending Shay here as I believe the organization is really not much more than a dues collecting pay for program money machine but seriously...Jerry Wilkerson?

  • Homewatch CareGivers   1 day 25 min ago

    I find this thread fascinating.

    I am currently a franchisee at Homewatch CareGivers (7 years) and am currently in the top ten of revenue. I also 'crossed over' to become a Support Person since I believe so strongly in the company. I report to LaShelle. It sounds like a former employee who is disgruntled is enjoying talking trash. I have the utmost respect for LaShelle's ability to tackle the hard jobs and deliver the message that should be delivered.

    Sometimes when you say the Emporer has No Clothes, you are not popular! Feel free to contact me at bbrinson@homewatch-intl.com for another point of view.

  • Shay Resigns as IFA CEO and President   1 day 2 hours ago

    Ray, 

    The fact that the IFA is a franchisor group first is undeniable.  However, a great majority of the legislative efforts that they have been actively and effectively lobbying for (or against) involve positions that coincide with what's best for franchisees.

    While there are notable exceptions (Arbitration Fairness), the promotion of small business legislation and the opposition to laws that would hinder the ability of franchisees to continue to operate profitably is something at which the IFA excels.

    Card Check, Credit Card fee and Health Care reform, go down the list of major legislative issues and the Coalition of Franchisee Associations and the IFA very often share a common platform, shared from different perspectives.

    In summary, it is naive to think that the IFA would ever take a position that was "franchisor unfriendly".  But to the extent that the franchisor's business concerns align with that of any entrepreneur or franchisee, they are a most effective and increasingly formidable  lobbying voice. 

  • Shay Resigns as IFA CEO and President   1 day 3 hours ago

    IFA have never represented franchisees in the States and my close relationship with the similar FCA misrepresentation in Australia has caused me to look very closely at IFA.  Not for that long but long enough. 3 Years is a minute in franchising.

    Clearly IFA have a machine dedicated to maintaining the status quo for franchisors and there is nothing in that for franchisees including Meineke franchisees [?]. 

    IFA have the capacity to influence anything and everything  and anyone that can maintain the power imbalance. Franchisors have the coordinated financial power individually and collectively to shut down most franchisee attempts to find solutions.

    I don't know so someone tell me that IFA membership does not represent the best of franchising.  The Australian experience is that quality franchisors are not interested.  They don't need to manipulate anything.