Dunkin’ Donuts Dunked by Quebec Ruling

A 12 year franchisee-franchisor court battle (more acurately ‘battles’ plural) may finally be coming to a close in favour of the little guy as described in this recent article in the Globe and Mail.

In addition, it looks as if franchise legislation may soon become a reality in BC

But what is often not discussed in all of these positive changes is the trail of destruction that occurs leading up to these payouts.  Depression, divorce, and bankruptcies are just some of the items in the list.

In the past, the game has been quite simple for the franchisor.  They not only usually have deeper pockets than their franchisees, but they also often have their own ‘errors and omissions’ insurance which essentially allows them to pay a relatively small deductible and then let this insurance pay for a lawsuit that might be the result of an ‘error’ or an ‘omission’.

But the Franchisees do not have the liberty of purchasing ‘Protection Against Errors and Omissions Insurance’ insurance to level this field.  The Franchisee is forced to fight the battle on their own.  Yet the whole reason they are even trying to fight, is usually because they are losing or have already lost all their money!

The only option that a Franchisee can do is what the Dunkin’ Donuts team did – organize a group and/or class action lawsuit.  This way they can split the costs at least and prove that it’s not just one noisy Franchisee that is upset but the majority.

Something stinks here and change cannot come soon enough.

BC Liberals Step Up Game on BC Franchise Legislation

BC Liberals Step Up Game on BC Franchise Legislation

There are rumours that the BC Liberals are taking action on a bill put forward by Carol James of the BC NDP. This is nothing but good news and has begun to restore confidence in the BC Liberals amongst the thousands of franchisees across the province.

Until now, the BC Liberals have remained silent on the topic, even though extensive research and consultation has gone into the topic and came back overwhelmingly in favour of the need to adopt the franchise legislation already in place in most Canadian provinces.

“I visited my MLS Scott Hamilton who displayed a genuine interest in the bill and has assured me that he will be following up on it.” reported Wayne Taylor, operator of Franchisepro.ca. “Most policitians and people in general have no idea how negatively the current justice system is affecting BC families. It’s something most people just can’t imagine is happening behind these friendly logos they see on the streets they walk.”

BC is one of the last remaining provinces to adopt the legislation which has left many wondering about the ethics governing the province. Comparisions have been made to the property disclosure statement in a real estate transaction. “As a listing realtor, if I know of something so serious that the purchase of a home could turn into a disaster, I’m required to disclose that on the Property Disclosure Statement (PDS). Everyone would agree not showing something material like this is wrong. So why then can franchisors be part of passing a knowingly bad deal without such disclosure?” continued Taylor. “I personally know two grown men who have contemplated suicide, one of which would have left behind a family. I know of one divorce and multiple bankruptcies. If I didn’t have the support of my wife and two loving parents, I seriously have no idea where I would be today psychologically. It’s brutal out there and I just keep meeting more victims with each passing day.”

The BC Franchise Legislation Bill was brought to the table back in December of 2014. Carol James and Adrian Dix took the initiative to bring the bill forward and question the BC Liberals about why this legislation is not tabled. “Scott Hamilton was unsure why the bill had not been dealt with but has assured me that he will look into it and follow it up for me which is great. I have renewed hope that 2015 will be the beginning of a more healthy franchise environment” Taylor concluded.