Here’s an interesting article about a franchise being fined $300k for dumping oil down a drain. In addition to the fine, the franchisee was criminally charged. Although the liability may not extend to the franchisor, this sought of thing could escalate into a public relations nightmare.
Oil Down Drain Draws $300K Fine
as posted in The Lube Report (Industry News from Lubes-n-Greases), April 15, 2009
Heartland Automotive Services Inc., the largest U.S. Jiffy Lube franchisee, issued a public apology and will pay $300,000 in fines after pleading guilty to three misdemeanor charges of discharging oil into the Austin, Texas, sewer system, the Travis County district attorney announced Thursday.
The conviction on three counts of violating the Texas Water Code followed an investigation of a Heartland Jiffy Lube store on Burnet Road in Austin, Texas. In September 2007, members of the Texas Environmental Task Force executed a search warrant at the store. A subsequent investigation revealed employees routinely discharged oil and wastewater into the city’s sewer system with the knowledge of regional and district managers. The $300,000 fine is believed to be the largest for a Texas Water Code violation in Travis County, and possibly in the state, according to the district attorney’s office.
“We’ve closed that [Burnet Road] location, not because of this situation, but it was part of our rationalization of our store base as part of our bankruptcy last year,” Ralph Tschantz, Heartland Automotive marketing vice president, told Lube Report. Heartland emerged from Chapter 11 bankruptcy early this year. Tschantz said it is “highly doubtful” Heartland would ever reopen the Burnet Road store. “We have another store maybe half a mile down the road,” he added.
Heartland Automotive has an EPA expert on staff who has been through the Austin area market about three times, according to Tschantz. “As a result of the settlement, we’re going to go through those stores one more time and make sure they’re absolutely bulletproof,” he stated. “We have 31 stores in the greater Austin area. Our learning from this is to be much more attentive and go forward.”
Sgt. Jonathan Gray, lead investigator with the Texas Parks and Wildlife Department’s Environment Crimes Unit, stated that the “pit” at the Burnet Road Jiffy Lube location would flood every time there was a major rain. “It was a nasty mixture that was discharged into the City of Austin sewer system, and oil has a great potential to damage the environment,” Gray said. “Here, we caught it early enough to avoid a more serious problem.”
“What they had set up was piping and a pump that pumped [oil and rainwater] from the pit to a sink upstairs,” Travis County assistant district attorney Patty Robertson told Lube Report.
As part of an agreement, the district attorney’s office also ordered Omaha, Nebraska-based Heartland Automotive to issue a public apology that appeared in the April 9 Austin American-Statesman newspaper. In the apology, Heartland stated that the offenses relate to disposal of a mixture of oily water in 2006 and 2007. All the incidents occurred prior to Heartland’s entry into bankruptcy in January 2008.
“In addition to the $300,000 fine agreed to as part of the settlement, Heartland has invested in remediation efforts and training in its Austin operations to ensure any similar situations do not occur,” the company continued.
The great thing about social networking, that has been missing from online franchise lead generation, is the “meeting place.” It’s a place where a candidate gets to know the people in the know as well as on the fringe; the concept’s customers. So, let’s define the “meeting place.”
Of course, franchise sales are not quite as easy or simple as anyone who has ever presented a franchise sales opportunity can attest. But when you consider the building and infrastructure of the ride and the time spent developing the ride concept, the design of the structure, the projected ride experience and the large financial investment, it’s easy to see how both a franchise opportunity and a ride evolve the same and ultimately have similar objectives; to encourage participation, create a positive experience, instill a desire to do it again without remorse and to share their unique experience with others.
Prior to founding AmSpirit Business Connections, Frank developed the largest territory of Network Professionals Inc., a similar organization. In addition, for ten years he operated a successful law practice in Columbus, Ohio focusing on the creation, growth and sale of small business enterprises. After completing law school and graduate business school at the Ohio State University, Frank started his career as a tax consultant with Coopers & Lybrand.
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The following was my response to a recent post on 
As a franchisor, you are in the business of building relationships; relationships with your franchisees, with your potential franchisees and with your end customers. Relationships build sales, build your brand and build your franchise.
Real estate, insurance and financial services industries all fall into the category of highly regulated and policed industries. 
Although it’s certainly easier to accomplish franchise growth during “normal” times, the basics need to be in place even more so during tough times. That’s not to say we don’t need to think and act outside-the-box to make something happen. It just means we need to be extra prudent and diligent in our actions and not use the economy as an excuse for poor execution of skills. 
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