CAFO Rough Updates

Desperate Markham franchisee promises to hurt himself in a conversation with Pat Gibbons. Multi-award winning franchisee remains in store for now but put on COD by SERCA (with information supplied by CSD).

News Release
December 17, 2001

Rough Updates
Les Stewart, CAFO

Rough Updates

* Sault Ste. Marie franchisee camps out in store last night to prevent takeover.

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* CSD President Pat Gibbons’ $235,000 golden parachute (Court Order, Sections 36 & 37, see Deloitte & Touche site: http://www.deloitte.ca/en/Services/FAS/RAS/CountryStyle.ASP )

* Despite CSD comfort letters, Yonge Street and Bayfield Street Barrie stores closed last Friday.

* Police were called to 400 Bayfield Street store last Friday after the franchisee’s son uttered physical threats to crew executing their unannounced closing. The franchisee was given 3 hours to remove all possessions, leaving many items behind. Operator was lured back in September 2001 after a 8-month break. His wife was hospitalized for stress-related symptoms after their 2nd store closed in 2000.

* Desperate Markham franchisee promises to hurt himself in a conversation with Pat Gibbons. Multi-award winning franchisee remains in store for now but put on COD by SERCA (with information supplied by CSD).

* Surviving CSD outlets sales down 30 to 40 per cent.

CAFO has received a tip from an experienced franchisee who has survived (so far). He quotes CSD COO Peter Merton as saying in May 2001 that the company would look “a lot different in a few months. The company (franchisor) is just fine but there would be a lot less franchisees.”

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Action
Grand & Toy franchisees, CAFO to meet with Minister Sterling and Joe Tascona, MPP Barrie-Simcoe-Bradford today, December 17, 2001 at 3:00 pm at Sterling’s office, 250 Yonge Street, 35th Floor.

CAFO is calling for the appointment of an independent forensic accountant and bankruptcy lawyer to report to the Minister and stakeholders. The objective is to protect former and existing franchisees’ and landlords interests and to determine if any civil or criminal laws have been broken. Support services should be put in place for the affected franchisees and families.

CAFO calls for the amendment of the Arthur Wishart Act (Franchise Disclosure), 2000 and the establishment of a franchise industry overseeing body with enforcement power.


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