Frustrated franchisees call for legislation

Jesu Dasan figures he lost $180,000 in the 20 months he operated a fast-food franchise in Scarborough, He alleges the franchisor changed the terms of the contract, which drastically reduced the number of homes his business was allowed to service.

The Globe and Mail
December 3, 1998

Frustrated franchisees call for legislation
Dawn Walton

3%20for%201%20Pizza%20%26%20Wings%20franchising.jpg

About two dozen angry and desperate former franchise owners gathered in front of boarded-up pizza shop in Toronto yesterday afternoon to demand that the Ontario government step in to regulate the industry.

Some of the former business operators said they lost their life savings, their health and their families after pouring money into what proved to be unprofitable franchise food outlets.

Jesu Dasan figures he lost $180,000 in the 20 months he operated a fast-food franchise in Scarborough, He alleges the franchisor changed the terms of the contract, which drastically reduced the number of homes his business was allowed to service.

“I’ve had to go on welfare,” Mr. Dasan said.

He hired a lawyer to bring a case against the franchisor, but when he could no longer pay the legal fees, the lawyer dropped the case.

The frustration of some former franchisees has caught the attention of Ontario’s New Democratic Party and the Canadian Association of Franchise Operators, a fledgling advocacy group. Both are worried that franchisees are being duped with distorted market figures and inaccurate information.

Ontario’s Conservative government is considering legislation to govern the franchise industry, but NDP small business critic Tony Martin said the proposals lack teeth.

NDP Leader Howard Hampton urged the government to enact legislation that would include provisions for affordable mandatory mediation and protection from “fly-by-night operators.”


Brought to you by WikidFranchise.org

Risks: Access to justice, Broken relationships, ruined lives and alienated children, Must buy only through franchisor (tied buying), Justice only for the rich, Immigrants as prey, Franchisee revolt, Canadian Association of Franchise Operators, Les Stewart, Political champions, Tony Martin, Toothless law, Churning (serial reselling), Protest, rally and demonstration, Encroachment (too many outlets in area), Wild West of the business world, Life savings gone, Health consequences, Welfare, Mediation, Encroachment (too many outlets in area), Insider betrayal, Canada, 19981203 Frustrated franchisees

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License