Franchise Scandal Expose in Australia

"But the report shows that it can benefit some franchisors to wait long enough because time is on their side; with a cheap business for resale just around the corner."

This is exactly what I believe Quiznos is now shifting towards.  Allowing stores to close, go dark or sell for pennies on the dollar means that the next generation Zee enters into the picture with less debt right from the get go.  In the case of a store going dark, Quiznos renegotiates the lease with the landlord (if the landlord will even talk to them), then they will attempt to force the new FO to buy all new equipment (80-90K) and the cyclical pattern just repeats.  So, If you buy a store for 20-30k (including equipment) vs start-up cost of 320-330K (at least in the Northeast) then your fixed costs are dramatically lower.  With debt service of an expensive car payment monthly, you could probably eek out a meager profit.  I've preached this to corporate time after time and all I get is the "deer in the headlights" look.  Funny thing though, when you want to sell your store, I believe they deliberately "stick it" to those Zees that have been able to figure them out and call them out on their tactics.

Thinking of owning a Quiznos??? Tread carefully!!  Very carefully!!!

Often, I have heard that the "spirit" and the "values" of Australia are more like those of America after WWII and that Australians watch their government more carefully and tend to look after their "mates." It not surprising, therefore, that the Australian media would divulge and disclose managed churning in an effort to inform the public, and for news product that puts pressure on the government to serve the interests of the people, and not allow large corporate interests to rape innocent citizens to acquire cheap venture capital and cheap labor. Unfortunately, in this countty, except for a few reporters like Janet Sparks, who provides franchisees with the only news pertinent to franchisees and their situation, the business media and the general media aren't interested in getting the truth out there about the dirty little secrets of franchising and arbitration. The trap of the combination of the franchise agreements and the State UFOC's, that are a reflection of the federal policy as devised under the FTC Rule remains a dirty little secret that is hidden from naive and novice American investors in franchises. The protection of our liberties in this country by media and freedom of the Press is threatened as attacks continue on the NY Times and other Newspapers, and as attacks continue on Networks etc., in the game and name of "left and right" that has so divided this country. We must remember also that the independent thinking and reporting of those who are now tied to large corporate entitites is a thing of the past. Reporters, even investigative reporters, have to eat and feed their families and are subject to the control of the editorial boards of the newspapers they write for. The American people are put in the position of accepting the propaganda of the left or the right and really have no way of knowing who the good guys are. The truth is that the good guys on both the left and the right are controlled by huge corporations. CNN bill themselves as unbiased but they give more time to their favorite Presidential Candidates, one way or the other. There is more than one way to stack the deck and bring your favorite candidate before the public. Even the adverbs and the adjectives used in describing the candidates work to influence the public who is so easily brainwashed by all that they see and hear. Unfortunately, the American people, and especially those under forty, don't read and think any more and their thinking is disturbed by the visusal images of the beautiful people who deliver the news and their opinions of the news to us every day. Our Congress will be involved with "bathroom" and "backroom" politics, and hearings, as usual, and the world will look on in amazment at America, the beautiful. The Press and the Media will indirectly elect our next President, and who really controls the Press and the Media? Public television fights to survive the attacks against its independence to serve the people. The global corporate interests will wine and dine together and will try to protect the interests of the global capitalists who want to maximise their profits in secular free and democratic and capitalistic countries throughout the world. The American people are not well served by the government of the people, for the people, and by the people because the priorities inside the beltway have been purchased by special interests whose interests are not always allied with the interests of the American people. As more wealth and power is concentrated in fewer hands and more more middle class Americans fall into poverty, democracy but not capitalism will be threatened. Too bad! So sad!

The Australian Media is not Afraid to Uncover Churning for Profit and to put pressure on their government to try and protect innocent citizens from being raped by corporate predators. Our Media, except for brave reporters like Janet Sparks, who brings news that is pertinent to franchiZEES to their attention, ignores the long-standing rape of innocent Americans, who are lulled into a false sense of security by their government, who pretends that they are regulating frasnchising in the interests of franchisees. The pool of cheap labor and capital must be preserved for the "public good" even if it dishonors the longstanding belief, central to the strength of our democracy, that it is the rights of the individual as upheld by government that protects the democratic Republic. Too bad! So sad! This is an American scandal!

This is a shame!

Does the system need to be changed? It is a shame to have someone standing by waiting for another to fail!

The Franchisor at the centre of this news story is Bakers Delight. Bakers Delight is the world's largest bakery franchise with stores in Australia, New Zealand, Canada and now America, where their first store was opened in Seattle. Bakers Delight trades under the name of COBS Bread in Canada and America. Bakers Delight's conduct is currently being investigated by the ACCC - Australian Competition and Consumer Commission. This is due to numerous complaints received from current and former franchisees. The Australian Federal Parliament have also put Bakers Delight on notice that they are under scrutiny. There is more information on the website: www.bakersdelightlies.com including more media articles and franchisee's stories.