Disqus - Latest Comments for LesStewart

Re: 7-Eleven’s franchisee financial arrangement is “unusual” when compared to other companies

Les Stewart — Wed, 02 Sep 2015 21:07:02 -0000

Professor Frazer is correct in a narrow, formal way, However, from a small business investors' perspective and a cash flow basis, her statements appear to be misleading.

The majority of franchise systems state explicitly what their royalty and advertising fees are for the initial franchise term. Frequently, say, 6% and 4% is what the cheque is written out for. These are explicit costs.

However, left unsaid are the franchisor's hidden or implicit margins (ie. higher than market costs) from the franchisees' pockets. These are for supplies, renovations, equipment, training, payroll services, software leases, head lease issues, that must be bought ONLY from the head office.

I understand that 7-Eleven is an embarrassment to Australian regulators and industry sophists such as the Franchise Council of Australia and similar Big Franchising funcitonaries.

How sincere extremely educated and well-funded sophists (academics, bankers, regulators) are in fact is up to my commonwealth friends to judge.

Les Stewart MBA
Midhurst, ON Canada
FranchiseFool.com :: WikiFranchise.org :: FranchiseBanker.ca

Re: Tim Hortons lays off 350 employees at its headquarters and regional offices

Les Stewart — Sat, 31 Jan 2015 07:13:15 -0000

The next stage will likely be the shuttering of "under-performing" stores, as the 1,100 CDN Tim Hortons franchisees are obliged to "right size" their 96,000 employees.

While there have always been some TDL stores quietly be abandoned, the next step will be to deal with the dissenting franchisees in the run up to a false insolvency via a "down-and-dirty CCAA". see County Style donuts circa winter/spring 2001-2 (search "in the hole wikidfranchise"). Look for 0% CDN suppliers within 2 years: sorry Guelph, Oakville and Kingston.

The intentional financial sabotage of one of the nominally independent franchisor corporations may take about 12 months while the payoff is over $1-B in 3% less franchisee gross margin and next-to-zero "equity" (5 years) in the accelerated "churn" cycle. Much faster/deeper cuts than Burger King USA because their is no SOB CDN franchisee association/wholesaler to resist.

Maybe the Serruya brothers (Yogen Fruz, CoolBrands, Kahala) or MTY Food Group (who bought what was left of Country Style in 2009) will be the new boss.

Re: County lobbying to keep park open | Local | News | Barrie Examiner

Les Stewart — Thu, 28 Feb 2013 15:31:54 -0000

On behalf of one of the two citizens' groups:

While we appreciate the offer of another 12 months of uncertainty, we don't require any more time to fund raise, talk or twiddle our thumbs.

Please just ask the MNR minister to appoint an independent Advisory Committee to get the facts straight. We have 100% confidence that this real estate-based decision will be overturned and we'll be able to enjoy another 107 years of the joy that comes with Springwater Park.

If the Minister can't see his way clear, give the park permanently to those that have valued it for thousands of years.

Les Stewart

Re: http://www.torontosun.com/2012/09/20/gas-station-attendants-urged-to-speak-up

Les Stewart — Thu, 20 Sep 2012 17:15:03 -0000

Shell Canada's response is extremely weak.

Please provide us with physical copies of the relevant clauses within their franchise agreement and operating manual where gas-and-cash is mentioned.

Please provide examples of counselling sessions with any Canadian franchisee that have violated these sections.

Please provide examples of franchisees who have been audited for these offenses, disciplined or terminated.

Franchising creates vulnerability because of the captured investments of the franchisee. Any of Canada's 76,000 franchisees remain as franchisees ONLY under the unilateral king-like powers of the franchisor.

Shell is waiting for a class action lawsuit (franchisees and their employees).

Re: CEO apologies on YouTube

Les Stewart — Thu, 17 Sep 2009 08:38:27 -0000

Great idea and thanks for lumping them together. They tend to indicate the underlying sincerity of each of these CEOs.

For franchising companies, YouTube reveals how vulnerable brands are to reputation risk. Independent tradename weblogs help to re-build the distrust among franchisees that is often created by business models that are designed to drive capital only up the pyramid.