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Ray Borradale's picture

Churn, I'd like to agree on

Churn, I'd like to agree on every point but that would just make both of us wrong.

It's not about patience

1st A, not about patience it is about money and you/liss riordin are running out of favors from your Labor/SEIU friends. Bottom line is, a year from now, once Obama is out of office, once Washington has gotten some change happening in it, I think many of these "legislative items" will fall by the wayside without too much problem at all. Face it, this was it for you, liss-riordin and others, you had the best political friends, the most disposable money from Labor/SEIU and you still came up short.

RichardSolomon's picture

The distinction between the merits of lawyers and management

types isn't reliably demonstrative of your point. A lawyer with no business insights is awful, but a lawyer with good business insights is what management most needs when heads are in some inappropriate orifice.

Especially when franchise management has for so long been indoctrinated in the my way or the highway approach to just about everything, law and business insight skills can bring much needed remediation to many situations.

Oh, he's just a lawyer answers very few questions helpfully.

michael webster's picture

Operators and Lawyers

Guest right observes: " Franchisor lawyers have somehow taken control of franchisors over actual business people who know anything about making money. Their was open disgust that real businesspeople would allow this to happen and threaten what was a good thing."

This is exactly right.  But, those real franchisors need to "taxing" every vendor in the supply chain.

Fair Franchising isn't going away

No one with any experience expected the California or Massachusetts bills to pass the first time. However, laws like these require diligence, grass roots support and funding to drive their eventual passage. That, and for franchisors to lose money because they let their lawyers run them out of business.

I was at the Multi Unit Franchisee conference this past week and I can tell you that abusive contract terms in franchise agreements was a HUGE focus of discussion. Franchisor lawyers have somehow taken control of franchisors over actual business people who know anything about making money. Their was open disgust that real businesspeople would allow this to happen and threaten what was a good thing.

These aren't bust out, abused franchisees, either. These were the cream of the crop, very wealthy successes in franchising, many of them larger and with more resources than most domestic franchisors.

This was the first industry conference where I heard talk of fair franchising legislation discussed in open forums. Franchisors were openly castigated for losing control of their own businesses and allowing themselves to be put in the position of losing the best and best ended operators for their concepts because their franchise agreements have become unsignable.

As one very prominent franchisee stated in a Q&A to a panel of franchisors, large franchisees aren't asking that contrast be "fair," whatever that means. He just said that franchisees want them to be more realistic and reasonable, and focused on business issues and not lawyers dreaming up clauses in a vacuum that penalize people for investing money. It is unsluting to someone who you are asking for money to present them with contracts like these. They will kill franchising, at least with capable franchisee investors.

churn we have the patience

churn we have the patience and the tenacity and will continue until things are Fair for everyone. Don't forget we got the most votes. 

Ray Borradale's picture

Patience and Persistence

It was close. Jim has pointed out the lesson to take away from a one vote miss. But it ain't over until its over the line.

Not that Close

Let me see, who was it that said this was going to end up being a whole bunch of nothing? I think it was little ole overmatched, not as smart as you, completely out of touch ME! Poor 1st A, someone needs to hide the kitchen knives from him. Maybe good ole Ray from down under can calm him down with his whit and spelling assistance......

Jim Coen's picture

Fair Franchising Legislation Needs Grass Roots Prior to Filing

Even though the California Fair Legislation had key franchisee and franchisee association support at the hearings it was doomed from the start, because it was filed on behalf of an attorney without franchisees and or franchisee association’s involvement prior to the filing.

Once again it was an attorney filing legislation because of franchisees because of frustration with the way franchise contracts are written to compromise franchisee rights, making it impossible for an attorney to protect franchisees against aggressive and abusive actions by franchisors

Franchisee participation at the hearing was significant. What is needed now is a grass roots effort to make sure that those legislators who opposed the legislation (especially those two democrats)  hear about it while they run for reelection.

This is a war, in order to win the war franchisees need to join their franchisee association and encourage those associations to seek government relations initiatives state by state.

What is needed is for franchisees and franchisee associations to provide significant grass roots efforts PRIOR to any fair franchising legislation ever being filed.

michael webster's picture

Very Close

Richard, the franchisee associations needed one vote to get it out of this committee.  Two Democrats voted against it, yet two Republicans didn't vote.  All four need more information, and the Bill may have to be re-drafted.  It will need another co-sponsor next year.

Only the beginning....

With apologies to the musical 1776, "I hear the chirp, chirp, chirp of an eaglet being born..."

Ray Borradale's picture

What to expect next?

There are a few things we have heard here today that I think we can work on. I'm committed to do that,  Assemblyman Huffman

Are we to understand a variation of Bill 2305 may be tabled sometime in the future?

Fancy the Californian Retail Association's Latimer suggesting the Bill had something to do with feeding lawyers when in fact the lack of effectiive relationship Law has been a massive windfall for lobbyists and lawyers and the main reason the IFA resists effective legislation.

RichardSolomon's picture

Was it close or was the fix in from the start?

Franchisees were given the opportunity to vent. As soon as the venting stage was done the bill moved to the execution chamber.

The LaFalce (aptly named) Congressional hearings on the same subject, called - I think - the Small Business Franchise Act (or something like that) followed exactly the same dynamic to the same end - minor variances discounted.

Effective Democracy requires FUNDING! Raising voices is just theater, and it never fails to fail.

For me the high point was the guy trying to character assassinate Peter Lagarias, a damn fine lawyer, by portraying the whole thing as a litigator's attempt to get another lawsuit opportunity. That was unnecesary, gratuitous and disgusting.

There have been great watershed moments in American history when abuse led to outrage and then to countermeasures. It required widespread violence and then the accumulation of huge sums of money to accomplish the establishment of the American Labor Movement. Similarly, the Civil Rights Movement required so much more than just talk and speeches.

There is never going to be violence in any significant scale in support of franchise changes. That leaves only the medium of exchange that so far is understood only by the IFA - MONEY BEGETS INFLUENCE.

michael webster's picture

The representative


John Latimer


Capitol Advocacy, LLC

Don Sniegowski's picture

California Retailers Association

It was the CALIFORNIA Retailers Association. It was hard to make out the name of the representative -- John Ladermer?!?

I'm quite surprised at how well franchisees and their associations did right out of the starting gate with a bill that plopped on their lap in its dash through the assembly. The timing of this hearing was terrible for franchisees. Many were juggling major conferences in other parts of the country this week, while trying to push the bill back home. Had it been a week from now, the efforts behind the bill would have only grown.

michael webster's picture

National Retail?

Don, who was the representative from the National Retail Association?

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