Who are the Good Franchisors?

Who are the good franchiSORS? Will they please stand up and introduce themselves? There are franchiSEES who want to know who you are so they can invest.

The good frnchiSEES are tired of hearing, “But not all franchiSORS are bad. It isn’t fair to blame the fraud on all franchiSORS.”

The good prospective franchiSEES may have heard this mantra so often that they genuinely feel sorry for the franchiSORS that are being lumped in with this mess. But maybe that’s because the good prospective franchisees haven’t yet signed a dangerous contract or gotten sued.

I have an idea.

I don’t want the good franchiSORS to be hurt, but what’s happening to franchiSEES right now is not anywhere close to okay. If there are truly good frnchiSORS out there, I’m sure they agree with me.

It is true that not all franchiSORS repetitively use civil process to maliciously aggress against their franchiSEES to take their life savings and homes. Not all franchiSORS intentionally make errors of omission or commission in their Franchise Disclosure documents because they know franchiSEES can’t afford to enforce accuracy in Court anyway. And not all franchiSORS get sloppy with training and services after collecting a hefty franchise fee.

And some franchiSORS really do their best to follow their agreements.

So, i my commitment to ending franchise fraud, I ask those good franchiSORS to please stand up. Show your faces through your actions, not your words.

As far as I know, there are no franchiSORS that do not rely on highly inequitable franchise agreements with personal guarantees. As far as I know, all franchiSORS reserve the right to have the power to get rid of franchiSEES they deem to be problems. As far as I know, all franchiSORS want to continue in the status quo of franchiSEES taking all of the risk of funding franchiSORS’ business expansion.

As far as I know, all franchiSORS are supportive of the International Franchise Association’s (IFA) decision to lobby against the new SBA Franchise Loan Transparency Act that would protect franchiSEES and taxpayers. As far as I know, all franchiSORS were supportive of the IFA’s decision to lobby against fair franchising.

That there are no franchiSORS who are truly committed to legislation that would enforce equality in franchising. And that makes sense. FranchiSORS are in the business for money, not charity. Right now, the FTC Franchise Rule supports a system that allows franchiSORS to use unequal contracts and aggressive litigation to ensure they can squeeze as much money out of franchiSEE investors as possible. That’s money the franchiSORS can use to expand their own businesses. Of course they don’t want to lose access to it — even if it comes from the coffers of hard-working families, even including families with children to support.

Business is business after all.

And after all, the FTC isn’t getting involved.

The IFA is obviously self-serving in its assertion that franchiSEES and franchiSORS should work together collaboratively with “trust,truth and honesty.” They make money when franchises are sold.

But they’re right that it is in franchiSORS’ longterm best interests to really take care of franchiSEES. They’re right about their assertion that franchiSORS and franchiSEES must work together interdependently for franchising to really work.

Yet right now, the IFA and franchiSORS are giving lip service to those ideas while they continue to support and use unjust contracts, require personal guarantees, and use aggressive litigation against franchiSEES.

Actions speak more loudly than words.

So will the good franchiSORS” please stand up? Will the good franchiSORS stand with the franchiSEES and support Senator Cortez Masto’s new SBA Franchise Loan Transparency Act? Will the “Good FranchiSORS” stand with franchiSEES in the future as we work to pass a Fair Franchise Act similar to the one introduced to the House in 2017?

And will the good franchiSORS please agree to self-regulate by choosing not to use unjust contracts with ALL CAPS statements that require franchiSEES to revoke their basic rights? Will the good FranchiSORS agree to not use contracts that include personal guarantees? Why should franchiSEES have to risk their life savings and homes to invest in expanding the good franchiSORS’ businesses? What other investment requires such absolute risk from one party and absolute protection to another?

My take is that franchiSEES will know who the good franchiSORS really are when the good franchiSORS start standing up in support of franchiSEE causes.

They can start with the SBA franchise Loan Transparency Act of 2019.

So…. What’s in it for the good granchiSORS?:

Yes, going against the groove and standing up to the IFA and all the other franchiSORS won’t be easy. It takes a lot of courage to challenge the bullies on the playground. But there are benefits…..

First and foremost, there are only a limited number of franchiSEES to go around. As prospective franchiSEES start wising up the industry’s endemic fraud, they’re going to be looking for better places to put their money. FranchiSORS who pretend to be honest and ethical while simultaneously using dangerous contracts and malicious litigation aren’t going to be at the top of their list. FranchiSORS who support organizations and lobbyists that oppose franchiSEE rights, and fair franchising won’t make the cake.

But franchiSORS who publicly stand on the side of equality and franchiSEES will.

What’s in it for you is that you get to prove with your actions that you really are a “Good FranchiSOR.” When the good franchiSORS want to prove that they really exist, they can take action to support. Treating franchiSEES right will prove your true worth and earn you more franchiSEES.

Will the good FranchiSORS please stand up? We’ll be able to discern who you are when you show us. Don’t just tell the world you’re wonderful and that it’s not fair that your franchise is being lumped in with all the fraud when you yourself don’t take part of it.

Instead, show us. Prove it.

Stand with the franchiSEES.

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