Franchisor Ethics CDI Corporation and their subsidiary MRI Network have demonstrated some questionable business ethics and franchise ethics. They represented someone as a real and regular franchisee and encouraged all real franchisees to work with that ‘bogus franchisee’. When I did so, the MRI Network MD congratulated me for doing so and winning a substantial contract with this bogus franchisee. But the truth is that this bogus franchisee had no current franchise agreement as it had expired years earlier. In fact he was not paying his royalties dues either. He had not been paying his royalties for many years and this culminated in debts of more than £170,000 (approx. $300,000 USD). When I worked with him in the false belief (created by MRINetwork) that he was a regular franchisee, he defaulted on money to me in the same way that he had been doing so for years earlier with MRI. When I complained about this to MRI, they attempted to coerce me into signing a get-out clause for their negligence! Now I believe franchises are a great thing if run ethically and properly. But beware of the ethics of some franchisors! |