Sean Kelly, publisher of franchise blog FranchisePick.Com and occasional troublemaker, responds to Bob Purvin’s response (Some W

It is difficult to reconcile facts with statements made by the former owners of Sona MedSpa. According to the May 29, 2007 Sona MedSpa Franchisor Press Release "Sona MedSpa Plans for Growth After a Favorable Arbitration Ruling" Heather Rose, CEO of Sona MedSpa stated, “This case was one of a string of cases brought against us. The coordinated attack on our business has utterly failed. We are pleased with the result of this arbitration, and even more pleased that our franchise partners are enjoying prosperity in their Sona MedSpa businesses.” The question remains which Sona franchise partners were or are enjoying prosperity?

Today is Blog Action Day (October 15, 2007). Since I am a franchise industry blogger, I am putting a challenge out to the entire global franchise industry........... It is time for our industry to see the light! 

If you are a franchise owner...If you are the franchisor...If you have the ability to influence buying decisions..Here is something you can do to be green.

Replace your old, non-energy efficient light bulbs with CFL's! By purchasing energy efficient light bulbs for your retail, restaurant, office, or home based environments, you can impact your own business, and the entire world!

Here is how we all benefit:

I realize the title is a bit misleading, and for those that clicked with lascivious intent or curiousity...gotcha.  It's good to know I am in good company.

CNN Money reports on a former McDonald's employee who was strip searched and induced to perform sexual acts received an award of $5.5 million in damages.

While I wholeheartedly agree that what occured is unconscionable and horrible, I am somewhat surprised by the amount of the award.  I don't see where such an amount is justifiable.  Assuming that the victim was very naive (not a hard assumption since she agreed to an alleged strip search by phone by proxy), I don't see how this in turn is an act that necessarily triggers McDonald's liability, aside from the fact that Mickey D's is the obvious deep pocket. 

Thoughts on Quiznos Australia 7 Years On Via the Australian Competition and Consumer Commission

The Quizno’s Master LLC, the US franchisor, registered Quizno’s trademarks in Australia from 1999.  By late 2001 the US franchisor had signed up an Australian master franchise agreement with a company that traded as Quizno’s Australia Pty Ltd.  The Australian Quizno’s franchisees are contract bound to the Australian master, and their immediate fate is primarily tied to that of the Australian master. 

By July 2007 the Quizno’s Australia story had veered off track.  Following an investigation by Australia's consumer regulator (the ACCC) into allegations of misleading and deceptive conduct towards franchisees and prospective franchisees, Quizno’s Australia Pty Ltd signed an enforceable undertaking with the ACCC.  Quizno’s Australia (by this time forgettably renamed to ACN 098 540 633 Pty Ltd, probably in order to comply with the Master Franchise Agreement between Quizno’s Master LLC and Quizno’s Australia Pty Ltd) agreed to offer to settle a festering dispute between itself and the ACCC (the latter acting on behalf of up to 20 franchisees). A sum believed to be equal to each individual franchise fee (up to $25,000 per franchisee) would be offered to each of the franchisees that was represented by the ACCC.

The refund of the franchise fee does not take into account the sunk costs of establishing the Quizno’s, or the opportunity cost of the money invested.  In Australia, the average startup cost of a retail franchise unit in 2006 was $265,500 (Frazer et al, Franchising Australian 2006; Griffith University).  Most of this sum is sunk costs.  The ACCC brokered settlement involves the franchisees absorbing the loss of all except the initial franchise fee. The next step for the individual franchisees will be to decide whether to: