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.

Franchisepro.ca picks up on Important Franchise Legislation article in Reputable Magazine

Franchisepro.ca picks up on Important Franchise Legislation article in Reputable Magazine

Wayne Taylor plaintiff in a lawsuit against Blenz Coffee in Vancouver, was interviewed in a reputable national magazine called Food Service and Hospitality.

Read about it here on Wayne’s Franchisepro.ca

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Read about it here

Blenz Coffee Franchise Poster Child Example of Need for BC Franchise Legislation

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In this most recent Business in Vancouver article on the topic of the need for franchise legislation in BC, Wayne Taylor briefly describes his personal experience dealing with Blenz Coffee (Blenz the Canadian Coffee Company Ltd) and just some of the claims he and two other former Franchisees have against the Vancouver franchise and its directors Sarah Kate Moen, Geoffrey Hair and Brian Noble.

Blenz Coffee and many other local Franchisors have essentially been able to do whatever they like while they hide behind their weighty franchise agreements and the shield of their pricey lawyers.

Until now.

Franchisees around BC have had enough and have figured out that the scales have not only been unbalanced but completely lop-sided in their Franchisor’s favour.

Typically what will occur is the Franchisee will enter into a binding legal agreement with the Franchisor and by the time he or she figures out that their investment is built on sand (or worse) they have no money left to fight the imbalance in court because government has been conveniently avoiding getting involved.

The result? Ruined marriages, unnecessary bankruptcies, lost homes, and serious cases of depression around our beautiful cities.

For some Franchisees there may be time to recover their financial house before retirement but for many others the clock has run out by the time the battle begins.

The government of BC needs to at least make a way for the small guy to have a fighting chance against companies that display sociopath and bully-like, in the same way that they have in other provinces.

It’s time to level the playing field.

 

Article by Tony Wilson about Franchise Legislation in BC

Tony Wilson is respected around town (Vancouver) as a Franchise Lawyer which is why when he writes an article in the Globe and Mail, the VCSFA pays attention.  In this recent article “Franchising is Big in BC – So Where’s the Legislation?”, Mr. Wilson talks about the British Columbia Law Institute’s (BCLI) consultation paper on franchise legislation in BC.  He explains BC’s odd position of being one of few provinces that remains without franchise legislation and even brings up an argument that the legislation may not bring notable changes as follows:

But will it [bring change]? If most franchisors in Canada – including those headquartered in B.C. that are selling franchises in Ontario, Alberta, Manitoba, PEI or New Brunswick – must comply with the legislation in effect within the disclosure provinces anyway, it is arguable this will add little more in terms of compliance costs to B.C.-based franchisors. They will simply adapt their FDDs to include B.C. Franchisors in other provinces will do the same.

Thankfully the VCSFA has had the honour of meeting with some of the people involved in this consultancy report and have been able to express our position on the matter.

Although Mr. Wilson is correct that many reputable Franchises are currently operating in compliance with other province’s franchise legislation and that they will be able to quickly adapt to any implemented BC legislation, this doesn’t take into account the fact that there are BC-born Franchises that have been operating without it for years *here in BC* and continue to sell stores.  Take for example the following ‘bigger name’ coffee shop franchises from our Francouver list that are either BC-born or operate primarily here:

  • Bean Around the World
  • Blenz Coffee
  • BG Urban Cafe (formerly “Bread Garden”)
  • Serious Coffee
  • Take 5 Cafe
  • Wave’s Coffee
  • Wired Monk

We have received local Vancouver reports from current and previous Franchisees involving horrific business practices that have resulted in bankruptcies, broken families, or other similar tragedies. In fact, some of the stories are so bad that you would be hard pressed to believe that the events could have possibly taken place in Canada.  Some people have been begging us to bring some of these stories to light and the companies behind them, but we are convinced that by means of the current court systems and eventual Franchise legislation in BC, that nasty people will be unable to continue in their nasty ways.

Do not think that just because a Franchisor is complying in other provinces that they will play nice and follow suit in BC.  We need clear and reasonable legislation right here at home.

In conclusion, let it be known that the VCSFA takes a very strong position *in favour of immediate Franchise legislation* so that it becomes very difficult for Franchisors to commit premeditated acts of business atrocities in our beautiful country, and especially in our province of British Columbia.