International Law

Blogs Helping Franchisees

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Richard Gibson, writing at the WSJ, provides a list of franchisee specific blogs.

But, I believe that Gibson has missed the main point.  Consider what he says.

"Would-be franchisees searching for investment ideas can find a bevy of information on franchising blogs. Such sites offer news, advice and comments by people already in those franchise businesses -- giving others a head's up on what to watch for and how to proceed.

For example, the Franchise Pundit blog reports that sandwich franchiser Quiznos is helping its franchisees renegotiate their store leases, resulting in an average 15% to 20% reduction, at no cost to them."

Ryan Knoll, writes the Franchise Pundit, and is an astute commentator.  But on this issue, Ryan didn't add anything more than the Quizno's press release, and one commentator added only a very cryptic response.

Now consider the Quizno's leasing issue discussed at Blue Mau Mau.  Don Sniegowski wrote the article on Quizno's helping franchisees renegotiate their leases.

But Don went deeper and asked a regulater commentator on Blue Mau Mau, attorney Paul Steinberg for his thoughts.  Paul had a more measured response.

"Paul Steinberg, a former New York City franchise owner of competitor Subway and a franchise attorney cautions, "It is important to remember that retail leases can be very complicated.

There is more than one way to skin a cat and landlords know of the different ways.

They know that unsophisticated renters only pay attention to base rent and escalation rates.

They can bury pass-through items such as property tax and additional rent items, while actually making these profit centers."

Had Paul not been contacted, he would have likely left his observations as a comment on the story about Quizno's helping franchisees renegotiate their leases.

It is this interaction, updating, and adding quality information that makes blogs worthwhile, and that part of the story was left out by Richard, along with other facts.

Full post as published by Misleading Advertising Law on March 27, 2009 (boomark / email).