This is an outstanding article regarding franchise investment.

Renting a trademark as a mom-and-pop oftentimes runs into trouble of all kinds. .

Les Stewart MBA
Midhurst ON Canada
FranchiseFool : WikidFranchise.org : LinkedIn

Under the Bank Act, the Royal Bank and its officers have a duty to act in a "prudent" manner. This would appear to preclude turning a blind eye or, at worse, conspiring by their inactions.

The standard is "knew, or should have reasonably been expected to know" of a fraud, over many years, happening right underneath their noses.

Schedule 1 financial institutions enjoy a very favoured position in Canada's economy.

To those that are given great abilities in a state-sanctioned oligopoly, at least a minimum standard of care should be expected.

I agree Derek.

Contracts are for better or worse, however, hindsight pseudo-philosophical analysis notwithstanding.

Franchising is a unique form of commercial activity. It provides legal insulation for the brand owners while exposing the franchisee to the risks of franchisor opportunism.

BP is a fully-informed franchisor and achieves the benefits of their choice of corporate governance. They have created the business model and independent contractors have chosen/not chosen to enter into a contract with them.

Franchisees who cut corners into small business by renting a trademark controlled by others should achieve the benefits and costs for THEIR decisions.

Renting someone else's brand is a risky business that should not be militated away so easily.

Les Stewart MBA
Midhurst ON Canada
FranchiseFool : WikidFranchise.org : LinkedIn