The Franchise Owner's most trusted news source

Log In / Register | Nov 24, 2014

Recent Comments

knowledge Required for new enterpreneur

First of all above this information really good one & its help.
1.What are the points need to keep in mind while buy new franchise of tyre
2. What about the profit of selling tyre.

Re: what did you do with your dividend? - So this is a payoff?

Who cares what they did with their dividend? Is that supposed to be a payoff for their silence? Maybe they needed the dividend to offset losses? Regardless, if they have a problem with the system what is so wrong about them stating it? Is there something in the Franchise Agmt stating that by receiving a dividend they are required to remain silent - or is it just an expected quid pro quo?

I must say, you sound like a

I must say, you sound like a real I D I O T.
For one, you have whatever rights are stipulated in your contract.
Your time to increase the strength of any rights you want is BEFORE you sign a contract.
This is very simple, if you do;t like the contract don't sign one.

This may surprise you but there actually are may happy franchises out there ad some excellent opportunities for people in the right circumstances.

I have buddy who is just starting his 4th franchise (this one is an existing unit. He has bee a zee in three prior concepts that were totally related - a nutrition supplement concept, an auto franchise and a fitness center. He is 49 years old. I checked on ziilow, his home is 2.5 times the media for the area he lives in, he belongs to the same country club I do, ad he is a voting member so his dues are 38k a year ad he drives a late model Mustang ad his wife has BMW ad his daughter just got a new Scion as a graduation gift.

My poi tis, some folks appear to do very well. He bitches about the fees the zor takes, but there he is buying into another one.

RE: Public Service Announcement

It's not legal to unilaterally change a franchise agreement. A Burger King CEO cannot wake up one morning and decide to change the royalty from 4.5% to 9%.

What are you thinking? A Burger King CEO is not Barack Obama now is he? Burger King CEOs and CEOs of other franchises can't use executive orders to change contractual terms. Only an Imperial President or Dictator of some banana republic can do it.

Franchisors are contractually allowed to do a lot of things under the agreement. It's not a question on legality. The things that are illegal for all people and businesses apply to franchises too.

Re: psa

You can't answer even a basic franchise management question. Again, how would you manage change in a franchise system.

Public Service Announcement

Even "great" franchise systems like Dunkin Donuts and Subway have had their issues. DD took 100 million dollars in franchisee equity a few years back. Subway continues to try and chip away at franchisee co-ops. The flea bit "opportunities" and operators continue to operate with impunity. A "great" opportunity with great management can turn into a Quiznos in the blink of an eye. Just change the agreement and operations manual. Yes, it's legal. Jack up prices and force franchisees to pay them. Yes, it's legal. Take the franchise from those who oppose the changes and sell it to someone else. Yes it's legal. Use the ad fund as a corporate piggy bank. Yes, it's legal. Bottom line is no one can predict who is next. Why would you take that risk with your hard earned money? Keep your money and equity. Separate and get a good private or public sector job. Leave these charlatans with no one to fleece.

Re: Franchising Is Indentured Servitude

Sorry this tirade of yours is fooolish.

Of course there are great franchise investments. You did not make a good choice.

Franchising Is Indentured Servitude

On Steroids. It's not an investment. It's giving your money and trusting your livlihood to charlatans looking to bleed you dry. Franchisees have no rights and no recourse. They're told when, how, and who to spend their money with. They're gouged in agreements so the franchisor can pad their bottom line with kickbacks. They have no lawful recourse. Until the system is fixed through legislation and franchisees are given the right to decide how their money is spent and real standing in state and federal courts there is no reason to argue about how to tinker around the edges.

Re: Re: easy solution

People shouldn't buy franchises if they can't be bothered to read the and understand the franchise agreement. This is not hard to do. Whining franchisees seems to know after buying the franchise what's required of them in the agreement. Maybe they should read it before they buy?

Franchisors do not award franchises they sell them. There's no awards ceremony. This awarding malarkey is some fooolish claptrap that someone thought sounded good. People should just stop saying it because they sound like idioots. Want to defend franchise awarding? Okay tell me how it works. Compare franchise awarding with franchise selling.

There are a lot of franchises you can buy. Most are not worth your investment. But that leaves a lot that are. So choose wisely.

Re: easy solution

Funny as you have no answer for this very basic question. Not buying a franchise would be the right thing for you. Most Franchisors likely would weed you out before awarding you a franchise hopefully. But certainly you should weed yourself out before investing.

But what is your "expert" opinion on how a Franchisor should handle change? Do you really think that the franchisee should modernize only when they feel like it? Should they only offer the products or services they feel like offering? Can each franchisee have a different look, feel, signage, products, services, operating standards based on their own determination? Can any chain survive if each location can make individual brand decisions?

I am just curious about how you would handle this very routine issue. Your solution is don't become a franchisee and I agree that that is absolutely the right thing for you to do. But, assuming that the world of franchising can exist without you as a franchisee and might even continue to offer franchises (1) does consistency in a brand matter (2) how would you achieve that consistency and (3) what would you do if a franchisee did not follow your decision ( what ever that decision was).

Easy Solution - Don't Buy One

The system is broken and you can't change it and you can't fix it. Buying a franchise gives the franchisor the right to decide when you spend your money, how much you spend, and what you'll spend it on. They can and do gouge you on everything, from the buildout to purchasing to advertising to remodeling. You can only accept that you're being taken and hope that there's enough at the end of the month for you to survive. If you refuse the franchisor will take your investment, sell it, and keep the money. You keep all the debt. You have NO rights in the court system. If you sue you'll lose. A bankruptcy court may salvage a small part of your net worth. And you'll move on a lot poorer and maybe a little wiser. Stay far, far away.

Re: vets need to know

The main point is that you don't have a clue ball you have is a complaint that you don't like being part of a branded system. You still won't tell me what your solution is.

That is your problem. You like to complain but don't have a bit of knowlege about what should be done. You're just a fraud.

TLC for Vets

Wrote this a while ago and its still applicable today

Vets Need To Know

The main point is that it's the franchisee's money and they have no say in what it's spent on and how much they're going to spend, as well as who does the work. You like the current layout and look? Doesn't matter. No money because you're losing your shirt with your Quiznos? Too bad. Quiznos did a makeover a few years before but they need to pad the bottom line this quarter so they're gouging you again? Tough toenails. Is that the kind of opportunity you're looking for? Didn't think so. Getting ready to separate from the military? Stay far, far away.

Re: didn't think you would answer


Your mistake was actually assuming he could think.

Dread Mango

I met Bill years ago back when he was still working for GameStop. Needless to say, he was absolute jerk.

Didn't think you would answer

You just like to complain. But having a workable solution other than you got screwed by Quiznos is out of your league. How would you handle remodeling? Come on. You know how to complain how about showing how you would actually manage a fairly standard issue franchise systems face. Let franchisees operate with old tired locations? Let the franchisees decide on the standards for their location?

Re. Si

So answer my question. How would handle consistency and required reinvestment in a franchise. Would you let each franchisee choose if they wanted to remodel or not?

So you are also a design expert and a qualified contractor also?

Yea my Franchisor Qualified contractor/Design Expert was on his first remodel when they did our store at our expense, In fact he was the fourth one in four years we found out later. So much for your expertise opinion. Get back in your corporate franchisors cubicle and space out some more.

So you are also a design expert and a qualified contractor also?

Yea my Franchisor Qualified contractor/Design Expert was on his first remodel when they did our store at our expense, In fact he was the fourth one in four years we found out later. So much for your expertise opinion. Get back in your corporate franchisors cubicle and space out some more.


So your suggestion would be that a chain store not stay consistent? Consumers will love going into old tired locations after going to a more recent model. That is a great strategy for the other franchisees in the system as well for you not to modernize because it is not convenient for you to do so. You understand the concept that a franchise is part of chain - don't you?

Why would you join a branded chain if you don't like following me the system. Did the Franchisor forget to mention in the FDD remodeling requirement and the fact you will be investing during the term? 0h - they did mention it but you just want all decisions to be run by you first. I get the idea. Thought for you. You should never have invested in a franchise.

Why don't you start your own franchise system and run it the way you like. How quickly do you think before you want to refresh the brand an require investment by the franchisees in modernizing? Not modernizing really worked well for the old Arby's - didn't it? Worked so well at non franchised brands like Sears for certain. Maybe you can also not offer all of the franchise system products because you don't want to invest in changes to the back of house also. Why in the world did you invest in a branded chain? What did you expect?

So you are also a design expert and a qualified contractor also? Sure the Franchisor should allow you to do what ever is convenient for each individual franchisee. Are you serious? How will that work?

How often should a franchisee be required to modernize? When it is convenient for them? Maybe every twenty years so you can amortize the investment fully?

Tell us how franchising should work in the area of updating the brand and why?

Remodeling On Your Dime, Or Else

Franchisors can also force franchisees to change the look and decor of their business whenever they want. Doesn't matter how much it costs or when you bought your location/locations. Want to source the materials or do the work yourself? Forget it. You'll pay inflated prices for the materials and labor while the franchisor gets a hefty kickback. Don't have the money? Too bad. You'll get a date to finish the remodeling and if you haven't done it for whatever the reason they'll take your location and sell it off. See you in bankruptcy court. Quiznos has pulled this one off a few times but it's a widespread practice among doggie style franchisors looking to pad the bottomline. Just another reason to stay far, far away.


More positive Ace news! I thought they only closed 1 store a year.


Ace added 43 new stores and cancelled 44 stores in the second quarter of 2014
BURNIN and CHURNIN at its best. Keep turnin the stores!!! we make more selling them than we do supplying them!!!!!

Did you return the dividend?

I'm glad you are beginning to get it. 22 closures/48 openings is not bad in franchising. How did Ace Hardware's competitors compare?

You have a fundamental misunderstanding of the financials. The 3.7 percent was the increase for the retail centers' same-store sales (with owners like you), not the percentage that revenues increased for warehouse/distribution (jointly belonging to thousands of zees).

As a member shareholder, what did you do with your dividend check from distribution? Did you return it and say that you didn't like how this money was made, along with a note to your fellow franchisees who sit on Ace Hardware's board of directors?