The founders of Cereality, a cereal cafe currently in the process of franchising, are dealing with a heaping spoonful of competitive reality. Apparently, they donâ€™t consider the perceived imitation by some very similar restaurant concepts as a sincere form of flattery. They consider it trademark and patent infringement.So theyâ€™re suing.The legal tussle caught the attention of Time magazine which has included an article about the cereal smackdown in its latest issue. Click here to read the article. Weâ€™d like to get your take on this topic. Is Cereality overreacting? Are the competitors getting a free ride after Cereality has already done all of the heavy lifting? Are protesting college students justified in accusing Cereality of heavy-handedness?And isnâ€™t it poetic justice that it all began in a place named Battle Creek?
Mandlers, The Original Sausage Company, located at Union Square in NYC, has announced the opening of an online sausage store. The company, which began offering franchises relatively recently, sells 9-1/2 inch European-style sausages at its Manhatten-based eatery and is making all varieties of its sausages, along with a line of proprietary mustard blends, available to online shoppers. Check it out at Mandler’s website.
Emaximation, a company that provides sale lead management to franchisors, released its ranking of the top ten franchise directory portals as indicated by their aggregated client data. They claim the data is based on lead flow from 170+ franchisors and business opportunities that utilize their system. In alphabetical order, the online directories are:
|Be the Boss||Franchise Gator|
|Best Franchise Opportunities||Franchise Opportunities|
|Bison||Franchise Solutions Network|
|Franchise For Sale||Small Business Franchise|
Google-owned Alexa ranks the top websites, in terms of web traffic as of today:
|1. Franchise Gator||6. Be the Boss|
|2. Entrepreneur||7. Francise.com|
|3. Franchiseworks||8. Best Franchise Opportunities|
|4. Franchiseopportunities.com||9. Franchise Emporium|
|5. Bison||10. World Franchising|
DEAR FRANBEST: I read in the company’s UFOC [Uniform Franchise Offering Circular disclosure document] under ITEM 19 that the company provides no information or representations of potential revenues or profits. However, the marketing packet they sent me contains a page entitled “Monthly Revenue Analysis” that shows that I can make from $21,150 to $35,250 revenue per month, with a monthly cost of $9,000. The salesman verified these numbers in an email. What do you think? Confused.
Dear Confused: I think you should grab your checkbook and run. The only way a franchisor can legally provide revenue or profit claims or projections of any kind is by using a prescribed formula in ITEM 19 of the UFOC. This franchisor is either knowingly or unknowingly providing illegal earnings claims. They are either dishonest, ignorant or both. SK
A lawsuit spells trouble for the budding dog-n-burger franchisor D’Mustard. They’re in the doghouse with unhappy franchisees, who accuse them of fraud and failure to deliver services.
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