Today's news for the franchise & small biz owner

A Canadian court ruling involving Tim Hortons may be a cautionary tale for Dunkin’ Donuts franchisees. The case was brought by a group of Tim Horton’s franchise owners after they were forced to sell items at below cost and switch to more expensive pre-baked donuts from a supplier affiliated with the franchisor.

If franchisee satisfaction is, as we believe, an important indicator of future actions, the next few years could be challenging for the franchise industry.   

In the midst of an economic crisis, it’s no longer easy to get credit. Americans are beginning to live within their means. Unnecessary expenses are being cut by families and corporations.

I think I can see the beginning of a trend in franchise law for the purpose of enabling courts to deal with the worst influences in the industry. Unfortunately, if the trend continues, the way in which the law will change will adversely affect ethical franchisors that don’t deserve this.

I’m in Silicon Valley at a conference of entrepreneurs—it’s an annual event and what’s remarkable is that attendance this year is 20% higher than last year!