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by fancyfredbot
13 days ago
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I agree with you. It makes no rational sense for the corporation to act this way. I can see how they end up losing a court case but can't explain why they don't pay up. It sounds like the first franchise collapsed owing money. I expect the company had created strong incentives for employees to claw that back. Someone has followed those incentives against the interest of the corporation. This happens all the time although in this case they break the law. Eventually there's a lawsuit and a lot more people get involved including people without any incentive to do illegal things. However those involved originally present some varnished version of the truth (to avoid getting fired!) the company trusts this version of events. They decide to fight the case in court. Then they lose the case. Those who decided to fight it realise they made a bad choice and they now look bad too. It's at this point that the weirdest thing happens. Why do they choose to close the store instead of paying up? My guess is that it became personal for someone. |
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It did not, the franchisees simply wanted out because they were offered better paid work overseas.
They told corporate they wanted to sell the franchise back to them, as they say they wanted to recoup their investment in the franchise before they left the USA.
Corporate arrived the same day and started saying the franchise owes them $200,000, didn't inventory the franchise, terminated their franchise that day, seized the franchise that same day.
https://www.youtube.com/watch?v=14ktgvoH4Mc&t=590s
I don't have the facts about who's right about that, but that corporate behaviour seems remarkably aggressive and fishy to me.