Canadian Alliance of Franchise Operators, Press Release, December 21, 2001

> We are all rather tired of rowing the Roman galley of franchising and beg the Minister for some further clarification: Is he is holding the whip or beating the drum?

Canadian Alliance of Franchise Operators
Press Release
December 21, 2001

FOR IMMEDIATE RELEASE

“I have never made but one prayer to God, a very short one: 'O Lord, make my enemies ridiculous.'
And God granted it.” - Voltaire

Canadian%20Alliance%20of%20Franchise%20Operators%20Les%20Stewart.jpg

BARRIE – The Canadian Alliance of Franchise Operators (CAFO) and ultimately Ontario’s 40,000 franchisees are left dumbstruck in the face of the Ministry of Consumer and Business Service’s December 17th news release.

We are all rather tired of rowing the Roman galley of franchising and beg the Minister for some further clarification: Is he is holding the whip or beating the drum?

Either way, the chains of franchise agreements are chafing just a bit more these days.

CAFO accepted an invitation in good faith from MPP Joe Tascona’s, Barrie-Simcoe-Bradford office to attend a meeting with Minister Norm Sterling, Mr. Tascona and two Barrie area Grand & Toy franchisees. Although an agenda was requested, none was provided.

The Minster's aide called CAFO to cancel the meeting citing the Toronto Star article as the reason.

The article accurately reflected my comments and had, upon reflection, the intended affect. The ensuing spectacle is somewhat Pythonesque, petty, partisan and unprofessional. Above all, it was completely avoidable. Apparently a matter as serious as the plight of 200 Country Style franchisees and their families seems irrelevant to the minister's staff. How could CAFO be so impertinent?

During the warm, autumn years of public service, some career politicians might well be concerned with their post-political prospects. Holding a degree in law would help. So might waxing eloquently on one's small business roots in Northern Ontario.

The franchise industry accounts for $50 billion in annual sales. Franchisees just don't appoint former
Politicians to their boards.

Franchising Pop Quiz

Q. What do the following have in common?
Country Style Donuts, Grand & Toy, The Great Canadian Bagel, MailBoxes Etc., Bulk Barn, Cash Converters, Robin’s Donuts, McDonald’s, Sobeys, M&M Meat Shops, Java Joe’s and Tim Hortons.

A. They are 12 of Canada’s 1,300 franchise systems. They are all members of the Canadian Franchise Association (CFA).

Q. What do the following have in common?
Bank of Nova Scotia, Osler, Hoskin & Harcourt LLP, Canadian Imperial Bank of Commerce and Deloitte & Touche.

A. They are all members of the Canadian Franchise Association (CFA).

The CFA and CAFO believe in disclosure. It’s the definition of disclosure that we disagree upon.

Privatization of crown corporations can occur from the top-down or the bottom-up. How do we replace collective agreements with franchise agreements? Start by making crown corporations exempt from provincial franchise law. Canada’s largest franchisor is Canada Post.

Q. Why is it that the LCBO is nicknamed "The KGBO"?

CAFO joins Tony Martin, NDP MPP in calling for the immediate appointment of a forensic accountant to examine the volatile Country Style Donuts crisis. Minister Sterling might consider covering the reasonable expenses of a few independent lawyers.

In the spirit of the season, an apology from the minister is unnecessary. In fact, franchisees are quite
"thick-skinned" and used to being ignored, underestimated, shouted at and abused. Too often it feels more like Good Friday than McChristmas for them.

We at CAFO wish you and yours all the peace and joy of the season.

Les Stewart, MBA (UWO) is a former franchisee, industry observer, franchisee advocate, business consultant and volunteer for the franchise industry. In his spare time he talks to many franchisees ….. and waits.

Contact:
Les Stewart
President
CAFO
705-737-4635 tel

For more information visit www.cafo.net


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