A Victory for Victims of Franchisor Abuse

A Victory for Victims of Franchisor Abuse

Today is a momentous day for victims current and past stuck in a broken franchise system in British Columbia.  Today at 1:30pm the government of BC will put forward the long-awaited Franchise Act put forth by Carole James on May 13th, 2015 now gets its second reading.

 

franchise-legislation

We should be very careful not to give full credit to Coralee Oakes, though.  If it were not for the prodding and pushing of Carol James and Adrian Dix, it is doubtful that this bill would have moved forward so quickly, or, possibly at all.

Will this end the pain forever for franchisees?  Of course not.  Franchisees will always be in a lower position of power under their Franchisor, but that is more than acceptable if the Franchisor is ethical and gives a duty of fairness to their ‘partners’.

It is not by coincidence that almost every other Canadian province has enacted the legislation.   It may have taken a long time and lot more victims along the way, but now, finally, a Franchisee will have a chance to right some wrongs as well as make a much better investment for his/her family.

What are the implications for current Franchisees stuck in the system?  For some it will make their stores more difficult to sell, no doubt.  They may have prospective buyers come across truths about the Franchisor during the disclosure process that will make them flee.  But is that any worse than handing off the pain to yet another victim?  Over the long term, this is the necessary change to stop the abuse.

What are the implications for current Franchisors?  For those who are already operating in provinces like Ontario, this will be ‘business as usual’ with a few tweaks.  For those who have been operating only in BC and under the dark cloak of invisibility and hiding behind their top lawyers and beating down their victims with unbeatable legal bills so they can continue their wicked ways – starting today their day will get very difficult and very uncomfortable.

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.