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ICJHF President Letter October 2017

October 31, 2017

Eric Karp has completed his review of the Walmart agreement between JHI and franchisees.  Between his opinion and through discussions with members of our board we have found the following:

1)      The Walmart agreement we are being asked to sign is very complicated.

2)      There is ambiguity in certain sections of the agreement which could be interpreted as though the Walmart agreement that we are currently under is no longer effective.  This means that if we don’t sign the new agreement we may be considered a tenant at will. It does seem that JH will honor the last year of the current agreement, but JHI has made it abundantly clear THAT THEY WILL IMPLEMENT THE NEW RENT STRUCTURE EVEN IF YOU DO NOT SIGN THE NEW AGREEMENT AND WILL NOT GIVE THE BENEFIT OF ANY INCENTIVES SUCH AS THE 10% CAP, THE DISCOUNT FOR LOW PERFORMING STORES  AND FLOOR DISCOUNTS FOR 1ST- 3RD YEAR STORES. THE CURRENT AGREEMENT ONLY REQUIRES THEM TO NOTIFY YOU IF THEY ARE RAISING YOUR RENT IF IT IS OVER A 5% INCREASE AND YOU WILL HAVE THE RIGHT TO NOT GO IN TO THAT WM. THE CURRENT AGREEMENT IN NO WAY RESTRICTS THE AMOUNT BY WHICH THEY CAN RAISE THE RENT.

3)      Taking any form of legal action to clear up ambiguities or anything else now is not cost effective nor do we have enough time given the tight deadline we’ve been handed by the Company. Also, a coordinated boycott could be viewed as harming the relationship between WM and JHI.

4)      I personally would love to take action against the bully tactics that JHI uses, but I also realize we have limited resources and we are about to undertake a large project in this legal action against JHI. I fully believe other grievances will come out in that action, see below.

5)      Based on Eric’s recommendation the board has decided to send the Company a “letter of protest” discussing the way this agreement has been handled from the beginning, its concepts and methodology and the timing given to review and sign it.

6)      Such letter may be used in the upcoming lawsuit against the Company regarding excess financial product revenue as evidence of JHI’s normal operating procedure with its franchisees which seems to ignore the Company’s commitment in the NFA towards dealing in good faith and fairly. 

Finally, THE DEADLINE TO SIGN THE NEW WM AGREEMENT IS THURSDAY NOVEMBER 2ND , HOWEVER WITH THE ROLLOVER HAPPENING WEDNESDAY  NIGHT, YOU SHOULD DOWNLOAD THE AGREEMENT BEFORE WEDNESDAY OR YOU WILL NOT HAVE ACCESS THURSDAY TO JHNET. SINCE EACH FRANCHSEE HAS DIFFERENT CIRCUMSTANCES, EACH SHOULD WEIGH CAREFULLY THE PROS AND CONS TO SIGNING OR NOT SIGNING THE NEW AGREEMENT.  Jackson Hewitt has made the deadlines clear for signing these documents and what will happen if not.

If you have any additional questions don’t hesitate to contact your ICJHF representative or any board member and we will do our best to help you understand this very complicated agreement.

Regards,

Kim Bledsoe
President
ICJHF 


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