The Marriage: Post Honeymoon

Credence goods: Experts often cheat

• Accounting fraud
• Accounting, creative
• Appraisals were inflated
• Breach of duty
• Credence good fraudulent expert
• Credence goods
• Development agents really just mini-franchisors
• Duty of care
• Fox to guard the henhouse (self-regulation)
• Franchise bar provides plausible reasons
• Fraud, renovation
• Fraudster accountant
• Fraudster broker
• Fraudster finance expert
• Fraudster franchisor
• Fraudster real estate
• Fraudulently selling fraud insurance
• Lawsuit is frivolous, without merit and will defend vigorously
• More one-sided information leads to greater deceit
• Outrageous fees
• Professional negligence
• Professional self-regulation
• Self-regulating professionals does not protect consumers
• Sham of self-regulation

A form of slavery, some say

• 2 per cent of valid claims make it to Trial
• David and Goliath story
• Don't use a brand name franchise lawyer
• Financial failure of first franchisee a material fact to the second
• General disclosure worse than no disclosure
• Indentured servants
• Lawyer for franchisor found liable for court costs
• Lawyers can serve franchisors or franchisees, never both
• Lawyers must be stripped of self-regulation
• Like a medieval marriage
• Will work even when Variable costs > than Selling price