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Rumors

A forum for franchise rumors and general entertainment. --

To get the ball rolling in the rumor department, have any of you heard about Quizno's Marketing VP Scott Darrell Lippitt being arrested in the beginning of August?

Police found alcohol and sexual paraphernalia in his car. He allegedly "chatted" with an investigator posing as a 13-year old female on the Internet and offered her some alcohol to relax her.

He's just been fired.

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Reputational impact on franchisees

Now, lets be fair here. Published reports did indicate as you say. But someone's personal life is only relevant to the extent it impacts the brand. But there is a difference between Picurro Pizza http://www.azstarnet.com/sn/printDS/89851 and this case. In Piccuro, the private life of the franchisor had a huge impact on the zees. In the case of Quiznos, I really don't see that the zor did anything improper, and don't see that it will affect the zees. Your larger point is worth remembering; the reputation of the zor (and the zor's founders/employees) may have a devastating impact on zees. Worst case, the employee loses her job but the zee loses her life savings. Not a criticism of franchising, just a risk factor to consider and a reason for zees to diversify their portfolio across multiple brands. --Paul Steinberg, pwsteinberg@msn.com
Don Sniegowski's picture

Sad News From Cleveland

Sad news from one of the site's earliest members. Writes our correspondent from Cleveland:
My dad passed away, Sat. after battling Lung Cancer. Here is the link: Jerry Libava 
Our hearts and thoughts go out to Blue MauMau's Big Kahuna. Please send him a note.
Bob Frankman's picture

Bad News For The Cleveland Franchise

Franpro, You have my condolence, oh resident of Cleveland. The Cleveland franchise tried to fight against the franchise in San Antonio, but couldn't win a single spar. San Antonio now has their third title in five years, which is quite a feat. Click here, if, dear reader, you have been in space somewhere and don't know what is being talked about. Frankman
FranSynergy's picture

Rumor Has It!

This morning as usual while drinking my 1st cup of coffee, I went to access Bluemaumau.com.  I wasn't greeted by that Fish with the Glasses and Bow Tie but by a black and white page saying that BlueMauMau was temporarily offline due to exceeding its bandwidth.

I began to wonder what had happened.  Rumor has it, that the word is out: BlueMauMau is the number one Franchise Site!  I think that perhaps all 800,000 + U.S. Franchisees all did what I did this morning, A Cup of Coffee and a little Blue MauMau.

So, if this rumor is true, I ask that you stay up late and sleep in, so that I don't have to wait in line for my Daily Dose of Blue MauMau!  Have you had yours today?

Believe & Succeed,

FranSynergy
Synergizing Franchising 1 Franchisee at a time!
www.fransynergy.com

Tinker's picture

But......

what if the franchisor knew of a criminal record and their status as a convicted sex offender? Wouldn't they then have left themselves as well as their franchisees and customers vulnerable? Rhino Super Center
Don Sniegowski's picture

Sports Franchise

Bob, I think you are on to something. Franchising can be found in just about every niche of human endeavor, including sports. The business of sports franchises has been lucrative for franchisees. Can you think of any franchise best practices, say in the NBA, that can be applied to franchises in other industries? -don-
Craig Hsueh's picture

Traffic Spike

Hey. Same here. I went for my cup of coffee, tuned into Blue MauMau to start my weekend and whallah, there was the message, "Site owner has reached bandwidth limit." I immediately began experiencing withdrawl symptoms from the lack of my daily dose of Blue.

Craig

Bob Frankman's picture

Practices of Sports Franchises

Here are a few.
  1. High entry barriers. Only 29 cities in the U.S. can afford to have an NBA team. There is only one team in all of Canada, the world's second largest country by land mass.
  2. Exclusive territory. Usually cities sign exclusive territory agreements with teams. (See Portland Blazer example.)
  3. Franchise moving fees if a franchise owner decides to move, they pay roughly $50 M to their franchisor, the National Basketball Association.
  4. Encroachment penalty fees: Who's the NBA looking out for? Well, in this circumstance the franchisee. A franchisee must pay a penalty of $50 million to the other team for moving in close proximity to another franchisee's territory

Sports Branding

Sports branding is different than other forms of business format franchising. There is incredible branding power, with a unique mix of the franchisor, the "NBA" displayed in conjunction with the franchisee, the Cavaliers, who have their own branding. It would be like Subway stamp on a famous Bumblebee brand NY sandwich shop franchisee that was the talk of the town.

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