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Dissin' Franchisement Follow

#1 May 09 2013 at 7:26 AM Rating: Good
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Some state legislators have crafted a bill that would give franchisee's more power over their business (taking that power from the franchise).

The two sides of the argument.....

A franchise-owner has little legal power over running his/her own business. It varies from corporation to corporation but for the most part the corp holds nearly all decision making power over franchises.. One common concern of the various franchise owners seems to be the ability to will or sell the business to an heir. It's often not allowed by the corporation. However, what brought this particular issue to the statehouse was the impending frozen donuts that Dunkin's will supposedly soon be selling from all their stores. One local DD owner refuses to sell donuts that come from a frozen product (seriously, can freezing a dunkin donut can make it any worse??).

The corporation on the other hand is all about consistency and wants to be able to retain the power to set standards that they deem necessary to insure Joe Public that the chocolate-covered donut he consumes in CA tastes every bit as equally horrid as the chocolate-covered donut he might consume in NJ.

Personally I would think a contractual agreement should have all the rules and expectations clearly laid out. Of course, there are always situations that arise that weren't previously agreed upon.

There is little language crafted for the bill yet, so precisely what power it intends to bestow upon the franchisee is unclear.

Should government, even state government intervene, proactively or legislatively, in franchise disputes?

What is the single best use of a frozen dunkin's boston creme donut?
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#2 May 09 2013 at 7:32 AM Rating: Excellent
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Frozen Dunkin' Donuts?

Don't think it should be an issue to give your shop to a heir, but it's a franchise for a reason. Suck it up or open your own version and compete if you want to be a unique snowflake.

But seriously, frozen donuts? This is why I go to Krispy Kreme.
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#3 May 09 2013 at 7:37 AM Rating: Excellent
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Elinda, Goblin in Disguise wrote:
Some state legislators have crafted a bill that would give franchisee's more power over their business (taking that power from the franchise).

The two sides of the argument.....

A franchise-owner has little legal power over running his/her own business. It varies from corporation to corporation but for the most part the corp holds nearly all decision making power over franchises.. One common concern of the various franchise owners seems to be the ability to will or sell the business to an heir. It's often not allowed by the corporation. However, what brought this particular issue to the statehouse was the impending frozen donuts that Dunkin's will supposedly soon be selling from all their stores. One local DD owner refuses to sell donuts that come from a frozen product (seriously, can freezing a dunkin donut can make it any worse??).

The corporation on the other hand is all about consistency and wants to be able to retain the power to set standards that they deem necessary to insure Joe Public that the chocolate-covered donut he consumes in CA tastes every bit as equally horrid as the chocolate-covered donut he might consume in NJ.

Personally I would think a contractual agreement should have all the rules and expectations clearly laid out. Of course, there are always situations that arise that weren't previously agreed upon.

There is little language crafted for the bill yet, so precisely what power it intends to bestow upon the franchisee is unclear.

Should government, even state government intervene, proactively or legislatively, in franchise disputes?

What is the single best use of a frozen dunkin's boston creme donut?



No, the Franchise owners knew what they were getting into when they bought in. Running a Franchise means that they have to maintain the image and regulations set down by the parent company in order to keep the name brand recognition that comes with it. The moment they refuse to sell a non-harmful product that will be mass advertised by the company is the moment that they should lose Franchise rights or be penalized in some manner.

The best use for a frozen doughnut is for taking out a cop in an ironic fashion.
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#4 May 09 2013 at 9:27 AM Rating: Good
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lolgaxe wrote:
Don't think it should be an issue to give your shop to a heir, but it's a franchise for a reason. Suck it up or open your own version and compete if you want to be a unique snowflake.

Ayup.

Seriously it's a donut. Not like it's something particularly complicated at heart. Here you go, now you never have to have to sell a frozen donut again. All that's missing is a bicycle, a bell, and something to help you keep them warm as you pedal around town. This should work nicely.

Now start peddlin.

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#5 May 09 2013 at 9:39 AM Rating: Excellent
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My little town is known as a franchise owner's dream. We have 2-3 major franchises and another dozen small franchises based here. (Mmmm Zaxbys.)

That said, I've got to side with the franchisers here. They did all the leg work to set up a franchisee's restaurant, everything from devising the recipes to helping set up the layout of the store. If the franchisee doesn't want the sell the product they agreed to sell, they can always sell the business to someone else who will.

Is the issue with the frozen donuts because he doesn't have a freezer and doesn't have room to put it in, or something?
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#6 May 09 2013 at 10:00 AM Rating: Excellent
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Mitch Hedberg wrote:
Every McDonald's commercial ends the same way: Prices and participation may vary. I wanna open a McDonald's and not participate in anything. I wanna be a stubborn McDonald's owner. "Cheeseburgers? Nope! We got spaghetti. And blankets."
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#7 May 09 2013 at 10:06 AM Rating: Good
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Catwho wrote:
If the franchisee doesn't want the sell the product they agreed to sell, they can always sell the business to someone else who will.
This is part of the problem, I think, is that they can't sell their business outright.

Quote:
Is the issue with the frozen donuts because he doesn't have a freezer and doesn't have room to put it in, or something?
I think it's more of a quality issue. I'm assuming dunkin donuts are mixed up and fried in-house. I'm sure the mix is a company product, but is a mix versus a product that has been wholey created elsewhere and then frozen and shipped to the shops. I assume it will then get deep-fried at the individual shop. I can't believe they'd just microwave donuts or some such nonsense. So, two things: It's a different product. A frozen donut is not the same as a non-frozen donut. 2. more of the construction of the donut is being done at a factory somewhere, less being done in the retail shop. I'd guess the retailer will be paying more for the product but perhaps less in labor.

Here's my take on the w-hole donut thing: If the franchise owner thinks the frozen donut is a sub-par product that he doesn't want to sell, I can't see why he'd want to retain the dunkin donut name as that name now stands for 'frozen donuts'.


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#8 May 09 2013 at 10:09 AM Rating: Good
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lolgaxe wrote:
Mitch Hedberg wrote:
Every McDonald's commercial ends the same way: Prices and participation may vary. I wanna open a McDonald's and not participate in anything. I wanna be a stubborn McDonald's owner. "Cheeseburgers? Nope! We got spaghetti. And blankets."

Because McDonalds are cold unfriendly places.
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#9 May 09 2013 at 10:14 AM Rating: Excellent
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Franchisers should have ultimate control over the product/services sold at franchisee locations, but I'm pretty sure this is a contractual issue, not a legal one. I don't think the federal or any state government has any ******* business regulating this.

And ultimately, if you own a franchise, you most certainly can will/sell the business any time you like, you just can't transfer the franchise license.
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#10 May 09 2013 at 12:00 PM Rating: Decent
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BrownDuck wrote:
Franchisers should have ultimate control over the product/services sold at franchisee locations, but I'm pretty sure this is a contractual issue, not a legal one. I don't think the federal or any state government has any @#%^ing business regulating this.


This. I'm not sure why the state feels the need to legislate this. It's a contract issue between the franchiser and the franchisee. The state is free to arbitrate the contract just as it can for any other contract within its boundaries, but I have to assume that the only reason to pass a new law is because that process wouldn't result in an outcome someone wants (which is a pretty crappy reason to pass a law IMO). If the changes being made fall outside those reasonably allowable within the contract the franchisee signed, the courts should be the proper venue to handle that. If they don't, then changing the law to force a different interpretation of that contract after the fact is a really bad direction to go. While someone may think this is the good and right thing to do right now in this one case, what you're really doing is sending a message to anyone entering into a contract in the future that the state may arbitrarily change the interpretation of said contract at a whim. Which is not a good thing.
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#11 May 09 2013 at 12:14 PM Rating: Good
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gbaji wrote:

This. I'm not sure why the state feels the need to legislate this.
I'm not sure either. It seems that there's an unhappy business owner whose buddy, the state legislator, wants to help.

Here's the original story.
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#12 May 09 2013 at 12:21 PM Rating: Excellent
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Elinda, Goblin in Disguise wrote:
gbaji wrote:

This. I'm not sure why the state feels the need to legislate this.
I'm not sure either. It seems that there's an unhappy business owner whose buddy, the state legislator, wants to help.

Here's the original story.
That's the impression I got when I read this line:

Quote:
"This investment, if the franchisor were to go in that direction, would be closed and the $3 million and the 80 jobs that go with it in Lewiston, Maine would go away, and we would no longer have the quality product that we have today," Seavey said.

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#13 May 09 2013 at 12:23 PM Rating: Excellent
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someproteinguy wrote:
Quote:
"we would no longer have the quality product that we have today," Seavey said.
I've never really associated franchises with quality products.
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#14 May 09 2013 at 12:24 PM Rating: Good
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someproteinguy wrote:
Elinda, Goblin in Disguise wrote:
gbaji wrote:

This. I'm not sure why the state feels the need to legislate this.
I'm not sure either. It seems that there's an unhappy business owner whose buddy, the state legislator, wants to help.

Here's the original story.
That's the impression I got when I read this line:

Quote:
"This investment, if the franchisor were to go in that direction, would be closed and the $3 million and the 80 jobs that go with it in Lewiston, Maine would go away, and we would no longer have the quality product that we have today," Seavey said.

Yeah, apparently the guy with the complaint currently makes the donuts for multiple retail DD stores. If they go with frozen donuts this guys donuts are no longer needed.
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#15 May 09 2013 at 12:32 PM Rating: Excellent
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To be fair though, if I was representing his district I'd probably find myself doing the same thing. Easily scored political points defending your local business against those evil outsiders.
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#16 May 09 2013 at 12:51 PM Rating: Good
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lolgaxe wrote:
someproteinguy wrote:
Quote:
"we would no longer have the quality product that we have today," Seavey said.
I've never really associated franchises with quality products.
Bad quality is quality too.
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#17 May 09 2013 at 12:53 PM Rating: Excellent
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lolgaxe wrote:
someproteinguy wrote:
Quote:
"we would no longer have the quality product that we have today," Seavey said.
I've never really associated franchises with quality products.


You've never been to Five Guys then.
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#18 May 09 2013 at 1:03 PM Rating: Good
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When compared to DuMont in Brooklyn? Might as well be McDonalds.
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#19 May 09 2013 at 1:20 PM Rating: Good
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Ah, okay. The complaint is from a middle man who is about to be cut out.

I agree, this is why I prefer Krispy Kreme. Not only are they fresh baked, I see the workers picking them off the assembly line with tongs when I order a dozen plain.
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#20 May 09 2013 at 1:25 PM Rating: Excellent
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Catwho wrote:
Ah, okay. The complaint is from a middle man who is about to be cut out.

I agree, this is why I prefer Krispy Kreme. Not only are they fresh baked, I see the workers picking them off the assembly line with tongs when I order a dozen plain.


I prefer my doughnuts more solid. Eating Krispy Kreme is like eating a flavored paper balloon.
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#21 May 09 2013 at 1:27 PM Rating: Excellent
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Shaowstrike the Shady wrote:
Catwho wrote:
Ah, okay. The complaint is from a middle man who is about to be cut out.

I agree, this is why I prefer Krispy Kreme. Not only are they fresh baked, I see the workers picking them off the assembly line with tongs when I order a dozen plain.


I prefer my doughnuts more solid stale. Eating Krispy Kreme is like eating a flavored paper balloon.


Fixed.
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I can't understand anyone who skips the cutscenes of a Final Fantasy game. That's like going to Texas and not getting barbecue.

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#22 May 09 2013 at 1:45 PM Rating: Excellent
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You wanna pay $1 - $2 for air and call it fresh be my guest.
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#23 May 09 2013 at 3:08 PM Rating: Excellent
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When you buy into a franchise, you buy into their entire system. It's not like the rules aren't stated from the get go. Yes, franchises do change the rules as they go, but again, that's written into the contract before you sign it. If you aren't willing to give them a lot of authority over your business, don't purchase the franchise in the first place.

That's not to say franchisees shouldn't speak out against changes, because they should. Many franchises actually have owners boards where changes are discussed before they even come out, so franchisees have a voice. Regardless though, if you don't want to play by the franchises rules, don't and have your franchise revoked.
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#24 May 09 2013 at 3:11 PM Rating: Good
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Elinda, Goblin in Disguise wrote:
Catwho wrote:
If the franchisee doesn't want the sell the product they agreed to sell, they can always sell the business to someone else who will.
This is part of the problem, I think, is that they can't sell their business outright.
Correct. However, that's stated in the agreement before you sign it, that the franchiser has the right to refuse a sale.
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#25 May 09 2013 at 3:22 PM Rating: Good
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Quote:
Franchisers should have ultimate control over the product/services sold at franchisee locations, but I'm pretty sure this is a contractual issue, not a legal one. I don't think the federal or any state government has any @#%^ing business regulating this.


Agreed, contract is separate from law and the government should keep its nose out.

Enforcing private contracts in courts of law is a disgrace. Great point, Brownduck.
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#26 May 09 2013 at 4:13 PM Rating: Decent
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Catwho wrote:
Ah, okay. The complaint is from a middle man who is about to be cut out.


Yeah. So it's not so much the franchisees complaining about the change, but the guy who used to make their doughnuts complaining cause they're being forced to buy via a different source and that will make things difficult for him. Um... Can't he sell his doughnuts to other retailers then? And if he can't, then doesn't that suggest that his crappy doughnuts only made a profit because he was able to make a deal with those franchisees in the first place?
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