Letter to Hon. Norman Sterling, Ontario Ministry of Consumer and Business Services, Canada

Presently, after multitudes of stores closing within the system, it is believed among many franchisees and members of the real estate community that Great Canadian Bagel Ltd. is preparing to close. Speaking for myself, I cannot afford to lose what I have invested. Any assistance you can offer in resolving this matter would greatly be appreciated.

Letter to Hon. Norman Sterling, Ontario Ministry of Consumer and Business Services, Canada

April 7, 2002

Mark Izzard
X xxxxxx
Kanata, Ontario K2L 3Z3 (613) xxx -xxxx
moc.xxr|xx#moc.xxr|xx

The Honourable Norm Sterling
Ministry of Consumer and Business Services
250 Yonge Street, 35th Floor
Toronto, Ontario
M5B 2N5

Dear Minister:

I am writing to you as a concerned franchisee of a large Canadian franchise system that, from several indications, is preparing to declare bankruptcy. I seek whatever assistance you are able to provide so that I may protect myself or negotiate a sale back to head office.

Great Canadian Bagel Ltd. misrepresented their firm to me by providing false sales information when I purchased an existing store from them in November, 2000. When I immediately brought this to the attention of the corporation’s president, Brian Leon (now resigned), I was assured the matter would be rectified quickly. After much stalling, I was told the matter would not be resolved as proposed “for the time being”. I then proposed to sell back my franchise to them for what I paid for it. This offer was rejected but I was again assured that they would find some way to correct this.

Finally, after further persistence on my part, they agreed to reduce my royalty payments for one year and also reduce my loan outstanding to them by up to $25,000, IF I invest $25,000 or more in needed leasehold improvements. It was also suggested at that time by Ed Kwiatkowski, now acting president, that I “buy” a pizza franchise to add to my location as he concurred my store was too large for bagels alone. According to the sales information originally provided to me by Great Canadian Bagel Ltd., however, the store could easily stand on its own. I have a Commerce degree and over ten years experience operating three successful food businesses. What I have witnessed in the last sixteen months ranges from incompetence to a dangerous lack of ethics.

I have always paid royalty and advertising fees on time, however in light of future uncertainties I recently began to withhold loan payments. Presently, after multitudes of stores closing within the system, it is believed among many franchisees and members of the real estate community that Great Canadian Bagel Ltd. is preparing to close. Speaking for myself, I cannot afford to lose what I have invested. Any assistance you can offer in resolving this matter would greatly be appreciated.

Yours truly,

Mark Izzard

cc: Mr. Les Stewart, Canadian Alliance of Franchise Operators


Brought to you by WikidFranchise.org

Risks: Bankruptcy, Canadian Alliance of Franchise Operators, CAFO, Les Stewart Misrepresentations, Victims are highly intelligent and educated, Wealth is meant to be re-distributed (not created), When the franchisor tanks, so does the franchisee, Canada, 20020407 Izzard Sterling

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