Posted by philips 19 hours ago
I couldn't figure out what is being claimed here. I'm not saying it's not true, I just can't follow the story at all.
EDIT: After reading other sources, it seems that the franchise owed $200k to BAM (unrelated) and also made a deal with the Mansell's directly. And it seems like the parent company is saying the unsold sets have been returned but the money is theirs because the store owed them money, while the Mansells are (correctly) saying consignment means they own the sets, not the franchise. BAM crossed into definitively illegal territory when they continued to sell sets after the Mandells asserted they wanted their property back (as confirmed by a "sting" operation).
The Reckless Ben stuff is actually pretty interesting: https://youtu.be/14ktgvoH4Mc?si=yhSzpEDo5ut6s8eS&t=880
A man gave a store merchandise on consignment, signed a contract with the store manager.
The manager lost control of the store to corporate. The goods were still there, still on display and being sold.
Corporate says, "this is mine now" and refuses to honor the contract. "It wasn't our name on it, says right here that the previous store manager signed this, and she's no longer with us." They sell the goods and keep all of the revenue, rather than just their 10% share.
It seems like theft, but it's a very common civil contract dispute. The side with possession and deeper pockets is the side with the leverage, sadly!
this seems kinda obvious that if they dont have a contract to do consignment, they don't have a contract to the lego at all, and cannot sell the lego
The unfortunate loophole here is that, potentially, by shutting down that franchise in a bankruptcy the corporation may end up being preferred for being made whole on debts relative to the consigner. Bankruptcy is complicated so while I am pretty sure any remaining goods from the consignment would be returned to the original owner the proceeds from sales that were successfully made might end up in the pocket of the corporation.
Personally, I absolutely loathe consignment. It is an incredibly complex agreement with a lot of weird edge cases about deprecation of goods and the duty to seek a good price that get complex quick. If you have goods like this and can find a store that will buy your goods in bulk you should be very careful in considering how much you care about the price difference between that bulk price and the percentage they list for consignment. A single transaction is usually much cleaner and easier for both sides and in this case (trying to pay for medical costs) having the money immediately can be quite attractive.
All of which contradicts the current corporate response
the reckless ben youtube videos are pretty clearly laid out with contracts, video evidence, etc..
the crazy part to me is how blatant the executives of bricks and minifigs are in saying go ahead and try to sue us, we’ll drag this out until you’re broke from lawyers fees. we’re a lawyer rich corp and you’re not. they don’t even try to hide it.
bricks and minifigs are just crazy dickens movie tier evil it’s crazy.
To my experience this is a common strategy in disputes when the corporate party has people who operate as uncivilized brutes. I think it's part of the McKinseyfication of companies - profits at all cost - and here's the playbook.
My personal experience is from private parking control. Rather than be professional about my reclamation, their first response was "only criminals dispute these and we win all the court cases".
So I think trying to be imposing and villanous to scare the other non-corporate party to back off is a common global corporate playbook in situations in matters where companies enter contractual complex space with individuals.
You either need to pay the sales price of the consigned items, or just give them back.
If you do neither, its the same exact thing as theft. Which is what they did. They took possession of the 200k lego set with no reimbursement. Just plain ol' theft.
Reminds me of the whole "disney must pay" debacle.
“Authors Have Formed a Task Force Because Disney Refuses to Pay Them”
https://bookriot.com/disney-must-pay-task-force/
> Authors like Neil Gaiman have formed a task force to fight for the royalties Disney has refused to pay for Star Wars and other tie-in novels.
If I'm a lego trader and I buy your set for $900 hoping to sell it later for $1000, in the meantime that's $900 I can't invest in anything else. And maybe I guessed the set's value wrong and I end up unloading it for $800, taking a loss.
On the other hand, if I agree to sell that same set on consignment? Zero capital outlay, zero risk of me taking a loss - just some shelf space and admin work.
Unless the store owns its building and has too little inventory to cover the shelves, the cost of not filling the shelves with the right goods is quite serious. In a low-margin business like retail, "just some shelf space" reads almost like "just some gold bars".
Stores also wanted to look full. We actually had parameters in our inventory management logic to increase inventory just for presentation reasons. If inventory is expensive, having some free, quality inventory can be valuable in and of itself even if it moves slowly.
However, in this particular case, the legos were initially displayed as a customer attraction, and then kept in storage. Presumably there's still some inventory cost in storage, but the shelves are clear.
>> The collection will be on display in the store's party room from 10am till 6pm on Saturday, November 11th, and 11am till 6pm on Sunday. The collection will be available for sale immediately, so the best time for pictures will be Saturday morning. The collection will not be stored on-site after hours for security reasons, and after Sunday the sets will be available for purchase but stored elsewhere.
Depreciation: not going to happen on Star Wars sets that are not longer in production.
Water damage: Lego is water proof.
Breakage: being easy to take apart and put back together is Lego’s core principle.
Edit: wait, the whole collection was sealed and new in box. Yea, just water damage to those boxes would cut the value by at least 10%. Collectors are picky as shit.
I didn't realize people bought Lego to leave in the box. But I guess I shouldn't be surprised because it's a common thing for collectors to do in other hobbies.
1. Even if the original consignment contract was poorly drawn up without a clear exit clause I think it'd be reasonable to expect a resolution somewhere close to this in mediation.
So you "absolutely believe" something that was already proven false, and which you would know if you had even _skimmed_ the facts.
I thought it was interesting to, from the assumption that the corporation actually banned consignments, still work through how it doesn't free them from wrong doing. Even in the best light B&M has acted in bad faith.
If you're talking about the corporation I think that any sensible neutral party would probably come down on the side that the corporation has no entitlement to those goods.
If you're talking about the liquidator then the goods were held by the franchise so if it went through bankruptcy those goods would be under consideration by the steward - I think they'd usually find that the original owner should be entitled to the goods since they're relatively non-fungible. The proceeds from sold goods are likely a more complicated answer since money is fungible and divisible. I could accept that there would be scenarios where a steward would think that the corporation should recover a portion of the proceeds.
https://www.cozen.com/news-resources/publications/2020/is-yo...
regardless of the law, it’s a very stupid move on the company’s part.
if they had half a brain they’d pay double the commission and pretend it aas internal miscommunication. $40k is cheap versus the pr hit they’re taking right now
The bigger problems I see here are:
1. You can't really sure large corporations like Bricks & Minifigs. They've got deeper pockets and can drag it out until you go bankrupt. There's no good legal recourse for this, meaning larger corporations can basically do whatever they want and ignore the law, as long as they only hurt people smaller than them.
2. The police refuses to treat this as the theft it is. There have been several confrontations with police that give a very strong impression that the police is corrupt and protecting the Bricks & Minifigs and its crimes.
3. Reckless Ben's questionable shenanigans seem to be the only way to fight for justice in unequal situations like this. The offending franchise is now closed. The victim still doesn't have his lego or money back, but thanks to Ben, Bricks & Minifigs is now also feeling the pain. Without that, they would have simply gotten away with it. Chance are they've done stuff like this before.
Also interesting are some of the stunts Ben has pulled:
1. Confronted with the claim that it's a civil matter, he tried turning it into a crime, by holding a raffle for one of the stolen sets that's still legally owned by the victim. The winner of the raffle went to pick it up, and was refused, making it theft from a lottery, which is a crime that the police is supposedly required to investigate (they didn't).
2. Several people buy $10k worth of lego from the victim and claim it from the shop. When they're refused, they go to small claims court, which is now possible because it's only $10k. Bricks & Minifigs ignored it and closed the shop instead. There are default judgements in favour of the people helping the victim, but there doesn't seem to be any way to enforce them.
3. He went out of his way to get the company to sue him, which is apparently better than him suing the company? I'm not sure why. But Bricks & Minifigs didn't bite.
The most effective thing has simply been the PR. The public attention may finally get law enforcement to investigate and punish Bricks & Minifigs. Or at least the broader public will know and avoid Bricks & Minifigs, so at least the company gets punished financially. That won't help the victim, but at least it would be some measure of justice.
This is also straightforward enough and enough evidence exists that it would be hard to drag it out.
You definitely can sue a large corporation and win or force a settlement. The “we’ll drag this out until you are bankrupt” thing is more bluff than reality. Courts do not react favorably to that. Especially when they have direct evidence of those threats.
A corporation may have a litigation cost advantage, but they’re still going to spend more than the $180k or whatever that they owed to execute this drag it out forever strategy.
But the store closed to get out of paying.
Which makes no sense if the store was corporate-owned. So why isn't the corporation paying?
The money in question here is the proceeds from selling a collection valued at 200k - the recovery (unless you start to get into punitive territory) is likely to be rather meager... and it's a large risk so there may be few bites on firms willing to take it on purely commission.
Is there not potential grounds here for punitive damages? The false police reports and harassment seem egregious even by corporate standards.
And the corporation is valued at $400 million, so it's not like the pot isn't sweet enough
That being said, it’s not illegal to be a bad business person, and none of that excuses the subsequent behavior by BAM corporate or the new franchise owner.
* They had sold about half of the consigned inventory
* The old franchise owner said they had a job offer outside the country
* Said franchise owner was current on a restructured fee schedule that, they allege, was the direct result of corporate bungling the transfer of accounts from the franchise owner previous to them
Unless the contract was written so poorly this didn’t happen?
Whats the other side in this? Feel bad for the 400 million corp with their army of lawyers? Feel bad for the store owners who scammed the person and acted like a total dick? Honestly, whats your take on this?
The difference between you and the person you replied to is that, despite neither of you knowing what the other side is, the other person was curious to learn it instead of assuming they know everything and attacking.
Is an attack on the credibility of the writer.
> The police, for their part, kept calling it a "civil matter" and declining to investigate. Every single time.
On the other hand...
> In a subsequent conversation after the store closure and lawsuit loss, when Ben indicated the logical next step was to pursue Johnson personally, Josh's response, according to documented accounts, included the threat: "If you try to pursue me legally, YOU stole the LEGOs."
> Shortly after that conversation, someone called in a police report claiming Reckless Ben was transporting heroin.
This is a strange choice by Johnson, since it instantly transforms the civil dispute into a criminal offense.
https://www.gofundme.com/f/help-bryan-recover-his-lego-colle...
> The goods were still there, still on display and being sold.
The store says the full inventory was not discoverable at the store. They said the person gave a written statement in the past saying the collection was "moved off site for security reasons" so I don't think this is really as cut and dry as the YouTuber and blogger people are trying to make it look.
> Corporate says, "this is mine now"
Their statement says they located what inventory they could and offered it back.
I think there's a lot more to this story. I wouldn't really trust the YouTube influencers for the whole story.
This does seem like a very key point that keeps getting ignored for the sake of a simpler story.
Everyone keeps talking about this lawsuit loss, but what lawsuit? Against whom? The article doesn't even explain, but it's starting to look like the lawsuit was against the former owners, contrary to the ragebait "Bricks and Minifigs stole..." title
Here's a video from the previous owners explaining their story: https://www.youtube.com/watch?v=zedmOopRTm0
Now as for the previous question of who was at the pointy end of those default judgments, I haven't been able to find that answer. I assume they should have named the local franchise as an entity and it's owners individually. Closing the store to avoid paying is arguably a fraudulent transfer of assets, but that would need to be taken to court in an enforcement action.
It is my understanding that BAM took direct ownership of the local store and therefore the small claims case was also directed against them, but at the moment I can't find where I've heard that so I'm not 100% sure.
It's really depressing to see to be honest.
Without being able to run up Ed/Ben's legal costs, trying to defend these suits at all is just a further loss for B&M for no benefit.
I don't think it was the deciding factor, but Ben also sent a fake Guinness award to the store around the same time they were being served. It is within the realm of possibility that they thought Ben was bluffing with the lawsuits and tried to call his bluff just to find out it was all real after they failed to appear.
Legal costs for a small claims suit is tiny, and would be easily doable for them if they could win it. Again, there is a reason they lost those cases.
Additionally, the original business in Kaizer shutdown as soon as the default judgements went through.
Bricks and Minifigs? Or the previous owners?
Do you mind citing your sources at least? The linked article refers to a "lawsuit loss" but doesn't explain who it was against or what it was for.
I'm not defending anyone. I'm saying the claims don't line up
> I will not do your work for you. Everything I said is true and easily searchable, feel free to look it up.
Everything I quoted was from me looking it up!
Again, if this is your knowledge after looking it up, then refrain from commenting, as your intelectual limitations will inevitably lead you to make false claims.
EDIT: as other commenters point out, BAM actually did lose the lawsuit over this and now the issue is the consigner is trying to collect the judgment. In that case it would normally be irrelevant that the store was a franchise location, because BAM would have become the successor to all liabilities upon taking over the store (in the U.S., at least). With deep pockets BAM could drag out the collections process long enough to try an extract a settlement from the consigner; the risk with doing so though is that interest accrues on the settlement at statutory rates that are normally higher than market rates and they face the possibility of court sanctions for any attempts at delay that have no reasonable legal basis.
It is theft!
What if he reported theft? Wouldn't they have to prove how did they come into possession of the goods they are selling?
FWIW, I couldn't follow it either from the blog.
There is no need for us to accept your sociopathic assertion that the rich should and will win.
This appears to be in dispute.
As per bricks and minifigs:
>It was clear the full list of inventory in his documentation was not located in the store. What items could be reasonably identified as allegedly belonging to the consignor was offered back to the consignor, but that offer was refused.
>A deeper dive into the sales receipts uncovered that a significantly higher volume of the listed sets had sold over the course of the consignment deal prior to the store transition.
It appears they are alleging that the prior operator had sold a larger portion of the consigned goods than they had claimed to the family.
BUT rather than unwind the agreement and return the lego, they just kept it. Argued for it to be dealt with legally. It was, they lost, so they closed down the store rather than return the lego.
Incorrect as the article points out with an image of the contract:
> However, it was brought to my attention by site user @luddevig that Chrystal Law, the Bricks & Minifigs Salem-Keizer store's original owner, was able to pull the franchise agreement between her and and the B&M Corperation, that clearly states that consignment is allowed.
I didn't know Ben dealt with cults until he revealed he started the "Scientology Sucks" religion, but as soon as the cops started baiting him into agreeing they had cause for arrest, I instantly guessed he had completely accidentally walked right into another cult corruption video. If I had a penny for the amounts of times I saw this exact type of cult discovery happen, I'd have 4, which is a pattern -> ALL cults are corrupt.
There were 10x small claims cases against i believe the single franchise (L2 Bricks LLC iirc) which were won by default and might not stick due to them going chapter 11
All we have to go by is the blogger's account, so that's the story. Just saying "there must be more to it" without evidence that there is more to it, is just vague speculation.
The common accepted meaning of "holes in a story" is not "I don't know the facts", but "the story itself is misleading or incomplete".
I couldn't say whether or not the work is misleading but I tend to assume guilt until proven otherwise under circumstances such as these. Of course that cuts both ways, I assume all parties involved to be misrepresenting things by default whenever there's drama. It's on them to prove otherwise to my satisfaction if they wish to convince me of anything.
I'm inclined to believe that there's corporate wrongdoing but the piece itself comes across as a blatant attempt to stir up drama as opposed to objectively informing the reader. It's certainly not the sort of thing I come to HN for.
Here is that side, published last week: https://bricksandminifigs.com/blog/blog/2026/05/21/salem-ore...
And some further elaboration today: https://bricksandminifigs.com/blog/blog/2026/05/28/bricks-mi...
I thought “it has to be some kind of corruption here”. And yup it’s the mormon mafia apparently
I've driven hundreds of extra miles per trip going around that damned state.
I lived in Idaho Falls (well within the majority Mormon area that extends farther North at least to Rexburg) and never had an issue, but I definitely knew I was not part of the club.
American Fork, UT is literally 10 miles from Brigham Young University, and BYU represents 1/4th of the state's bachelors degrees.
It's a bit like saying police officers in Italy are Catholic. I'd be more surprised if they weren't tbh.
(Disclaimer: I live near that area and also graduated from BYU.)
Mormons aren't implicated, but I fail to see how this can explain the behavior of the Oregon police.
https://academic.oup.com/california-scholarship-online/book/...
Why yes, 6 day old account, I would say the same in that scenario. Thanks for playing.
Someone recently told me that when he worked for the BLM, there was a lot of LDS folk, which reinforced my observation that they are overrepresented in federal jobs in general (I have no evidence for this, just several anecdotes). I assumed it is because they usually don't smoke marijuana, so they are more likely to be eligible. That abstract gave more compelling possibilities that I didn't think of, that don't seem conspiratorial, like the higher multilingual likelihood at concentrated places like BYU, making it a great spot for recruiting.
Does the article go into more detail on how they "corrupted" the FBI that is not easily explained by them simply being ideal FBI hires?
1. LDS members can be obligated to provide each other jobs where possible.
2. LDS members (especially of the same congregation) are obligated to not report on each other to non LDS authorities.
And these factors made it sort of an invasion, where after a couple of likely competent LDS members started to make towards the top of government hierarchies, they started ballooning these organisations with their compatriots. Theres been a heap of money spent changing the public perception of this towards "Oh actually Mormons make great public sector employees because they dont drink".
You wont find much for this outside of books usually from retired spooks or journalists who involve themselves in that area.
But the issues have occasionally spilled over to public notice.
https://www.upi.com/Archives/1985/10/02/Former-FBI-agent-tes...
The sports authorities get my gambling losses.
If a few hockey players were in a crime I wouldn’t be spouting nonsense about hockey mafias. And that’s a cohort less than one on thousandth the size.
Even if we take what corporate says at face value (there was no agreement, or the agreement is null, or it's an agreement that the previous owners agreed to) that still just means that the store possesses property that they do not legally own. Whether or not they legally came to possess the sets seems irrelevant here.
I'm not a lawyer but I don't see how the Mansells ever stopped owning the lego sets.
Even if the consignment was undone, they don't get to just keep the collection. The agreement can almost certainly be terminated, but the collection would then be returned to Mansell.
That would be why.
The store declares bankruptcy, and corporate is a prioritized creditor. From a certain view, based on the consignment contract means they wanted money, and I could see an argument that they're really owed $200k rather than the physical legos. Ie they're effectively just another creditor, and probably not a prioritized one.
"Ownership" gets very odd when you hand goods over to someone with the expectation that you'll never see those goods again, but will get money. It gets even weirder when that someone ceases to be a legal entity, and the goods are now in possession of someone you never had an agreement with. The store obviously has an obligation to hand over either money or the goods, but it's not clear that obligation is transient to anyone that ends up with the goods.
On the other hand, without the agreement, how can one prove the expectation that the goods were handed over with, at all? Without establishing that expectation wouldn't the ownership of the goods just stay with the original owner at all times?
It would make sense that there are some ways you can abandon property you own in a way that someone else can swoop up and take ownership it without having to give it back, but do any of those potentially apply here?
It is extremely clear. You are just detailing the buffer being used to pretend otherwise.
"How did you acquire these sets?"
"Uhm... don't know they just appeared out of nowhere"
Straight to jail.
"How did you acquire these sets?"
"We acquired them from the previous franchisee when we purchased the store. Here's the contract we signed to acquire the store and contents, here's the payment we made"
"Okay thanks that checks out"
And even then, the trail audit goes further as the previous franchisee didn't have a proof of purchase of $200k of inventory.
How is then America free and democratic? I’m not American and I’m very confused by this and also the concept of bail money.
As this story spreads people will just assume the whole chain is bad.
The bigger story is an elderly man needing to sell his toys to pay for cancer treatment.
We could give all people free cancer treatment, but defense contractors need money.
The whole chain is bad.
We're far past the point where the company bigwigs should have fixed this. It's not like they don't know.
> The bigger story is an elderly man needing to sell his toys to pay for cancer treatment.
Idk. Straight up corporate theft of $200k, backed up by the cops, is a more visceral story than 'yet another person merked by our predatory healthcare system'.
> We could give all people free cancer treatment, but defense contractors need money.
Yes, and that's important - but there are unique aspects to this story which shouldn't be overshadowed by the higher priority problem for the nation. The immediate problem for this elderly cancer patient isn't going to be solved by Americans suddenly realising that they have people power - but getting his Legos back might save his life.
This headline about star wars lego? Less so.
Sure. Any one person's story will be smaller than the whole picture - is that your whole point? What are you proposing - that we ignore stories like this until we fix healthcare?
Because if that's not what you're saying, why bring it up as if one cancer patient's life and property rights aren't important (even beyond tomorrow and next week)?
> 'yet another person merked by our predatory healthcare system' is a headline that will be relevant again, with new participants, tomorrow, or next week.
And so will corporate theft, and bureaucratic Kafkaesque nightmares, and police corruption, etc. There's no lack of overlapping evil to look at here.
Individual stories are still important and relevant, and ignoring them to look at the bigger picture is like ignoring water to look at the ocean.
IMO that's a pretty antagonistic read of my comment. GP said 'bigger story', you said 'visceral story'. In no way do I read myself or the GP dismissing the B&M story - quite the opposite, as GP says, noting "millions of dollars in PR damage" doesn't sound like ignoring something.
The second half of my comment was criticizing the news cycle, and its preference for unique headlines.
A guy is dying from cancer and unable to get treated because a $400m company stole his unique $200k life-long Lego collection ... That is a smaller story than America's murderous healthcare system - but until the guy's situation is corrected, no amount of media coverage is too little.
America's media failures also are a critical piece of the picture, but as written your comment reads as if painting this as a forgettable little story about Star Wars lego:
>This headline about star wars lego? Less so.
... I'm glad to hear that wasn't how you meant it.
I've now also seen part 2, in which the amount of police harassment that B&M seems to be able to bring to bear is absolutely disgusting.
https://bricksandminifigs.com/blog/blog/2026/05/28/bricks-mi...
This post and TFA have a common issue: no one seems to have a clear, compellingly evidenced account of basic questions about the collection and its history under consignment:
1. What exactly was in the collection?
2. What happened to the collection after it was consigned: which sets were sold, which were stolen or lost, which were moved to off-site storage, etc.?
3. How much money did the original franchise owner owe the consigner for the sets sold?
The peripheral claims about e.g. police malfeasance are disturbing, but without this basic evidence about the substance of the matter, I don't know if it's a great idea for an online mob to take sides.
If you see this clip, this is when corporate was removing the previous franchisee https://youtu.be/wscQpkcwgNU?si=_k_EDfs4NmO5riB5&t=126
TBH the fact that Chrystal was not making payments and the store had to forcibly repossess the store, points to her being the problem.
There’s now a boycott against them that will easily cost them more than that.
If the case is as this blog says, it cannot be hard to find a lawyer to do this one pro bono. Breach of contract is one of the few things in America where you can sue for your legal fees. If you take over a business you assume it’s contracts even though your name wasn’t on them. You gain anything the business owns but a consignment shop doesn’t own the inventory.
BAM is going to lose millions and for what? Is this article just wrong on substantial facts? Simple greed wouldn’t explain this as it will almost certainly lead to far less money, even in a short period, than returning it.
Something must be missing.
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.
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.
It’s an unfortunate fact that many people in positions of wealth and power default to “F-you my lawyers will drown you and I will win” in every single case, regardless of merit.
Many times, that is the singular strategy that has put them in that position of wealth and power. Many times, they apply this strategy to every situation where they already possess an asset or service for which they have not paid, and that asset or service is valued higher than an ongoing good faith relationship with the person or entity that they owe for the asset or service that they received.
It’s a wholly predatory strategy but it can be a very rational calculus, and it can propel you to the very pinnacle of wealth and power. Its continuously surprising to plebs because it goes against the fantasy of the fundamental justice of society that they have been inculcated with, a convenient lie that keeps powerless people in their lane and justifies the use of police powers to protect the criminal activity of the owner class.
I say this as a member of the owner class. I try not to be one of those people, but it’s easy to see justice as an unnecessary and frivolous expense. I’d estimate that a significant fraction of my peers are in this category, and nearly everyone else occasionally dabbles, often without even being aware of it as their lawyers push in that direction.
Ultimately, it’s a side effect of obscene inequality. I don’t know how to fix it, much less how to make the world somehow intrinsically just. IMHO there is no justice except the justice we go out of our way to create. Justice is not the natural state of the world.
Here, they are looking at small amounts of money, but they close a store, which presumably involves writing down an asset and forgoing future revenue. This only gives them a small chance of avoiding payment and risks the reputation of the entire firm.
The earlier decisions all fit the narrative of coldly rational, but I find the final decision to close the store doesn't fit. It's almost impossible to imagine how it ends well for the corporation.
Yes, franchisor hold a lot of power, and in the big picture the franchisees are small owners and a move like this ($200k of merch they haven't paid a dime for) can affect the PnL quite a lot on the local level. It seems like the average Bricks and Minifigs franchise store has annual revenue of just $600k. At that's revenue. Another search shows that their margins are around 10%-20%
If these franchise owners managed to pull of this, and sell the collection for $200k on top of the expected annual revenue, that would put their store margin for that year around 45%-55%!
I'm guessing Bricks and Minifigs, the corporation, just assumed this would fly quietly under the radar, and let their franchisees.
I think it just comes down to greed. A couple of franchisees figured they could make a killing, and become one of the most profitable franchise stores with no effort.
It's a lot easier to become a really successful company if you can keep your inventory costs down. Perhaps by investing in local law enforcement instead, to make sure no one looks too close at said inventory?
Donald Trump is famous for not paying even really cheap contractor bills, because he knew he could get away with it.
They aren’t publicly traded so it’s hard to find out.
It seems like there’s almost no employees and they collect a franchising fee and 6% royalty on the 200+ franchises that BAM claims makes $570k average annual revenue [0].
.06 x 570k x 200 = 6,840,00
So not sure how a $400M valuation comes from $7M/year in revenue.
And this is revenue, who knows what the profit is.
Still, I was surprised there’s 200 franchisees.
Some of the people in this thread making very definitive claims about consignments contracts without considering this specific jurisdictions should watch it... the victims here could have had an almost open and shut case if they did a bit more paperwork (and paid $20), as there is an exception for consignments over $1000 that gave some undue leverage to that corporation.
His Patreon:
https://www.patreon.com/RecklessBen
The latest updates on the whole scenario are happening here: