Look at the rediculous study used by this site to try to show a turnover rate of 144+ percent. Turned out if you believed the study the turnover rate was only 3 to 5 percent. Study was flawed and this site new it. But once the bogus interpretation of the numbers was disclosed , using those same numbers the turn over rate became 3 to 5 percent. Just having fun with a bogus set of numbers used by this site to try to create a set of facts that don't exist. It is like a lot of the postings on this site. They get published if they show a problem in franchising even if one does not exist. Fact here matter very little.
Information. The posts you refer to outline how franchisors can and do take franchisee's life savings through the purchasing system, vendor contracts, advertising fees, the buildout, and changing the operating agreement. The posts also point out that legally franchisees are forced to accept franchisor edicts and have no judicial recourse. They also point out that those franchisees who try and fight franchisors can have their franchise sold out from under them with franchisors keeping the proceeds and the franchisee stuck with the debt. Readers also learn that even "good" systems" can go rogue at any time, like Dunkin Donuts did a few years ago and that all that due diligence was useless. Finally they point out that the safest franchise purchase is no franchise purchase, especially for veterans who have the job skills craved by private and public employers.
The franchisor apologists are 100% right. No one should ever sign a franchise agreement under any circumstances.
They are a license to steal, each and every one of them. It doesn't matter that the management in place when you sign a franchise agreement is honorable. They WILL leave within 3-7 years, but your franchise agreement runs 10-20 years.
That leaves penty of time for the next management team to steal your franchise and then drain your savings, 491k, college savings account and your home equity under the personal guaranty and damages clauses in your franchise agreement.
The comment about the Dunkin Donuts franchisees that signed franchise agreements with decent managers who got taken to the cleaners by the next wave of managers that actually enforced the onerous terms of the agreements that were signed is all you need to know about never signing one of these things.
I'd like to see the data that shows that 97% of franchisee succeed. I can't find it.
Your posts are so routine and provide such little good information. How come 97% of franchisees succeed based on the study this site posted a few weeks back.
Predicting that Dunkin Donuts would take franchisees for 100 million dollars would have been quite a trick. And that's the point. In many cases franchisees were already locked in when the changes came and wiped them out. Every franchisor has the ability to do what DD did. Every franchisor can do what Quiznos and Rick Schaden have done. And there is nothing franchisees can do to stop it if the franchisor doesn't care about the system's future. When you invest in a franchise you put yourself and your savings in the hands of those who could, at any time, ruin you. Why trust strangers with your future? Vets who are separating are in demand in the job market. Good pay, good benefits and peace of mind. Franchising is like going to Vegas. The deck is stacked and the house always wins.
I am interested in Dealership of MRF kindly guide of the process.
----- It's not a franchisee problem, it's a franchisor problem.----
Really? Why is it the zees are excused for their lack of research?
Quizno's is a horrible franchise investment and a bad franchisor.
This has been known for about 15 years. Do the franchisees who bought it have any responsibility for their lack investigation and weak research?
Do you know that many franchisors will not hire anyone who worked at Quizno's corporate. They are a stain on franchising.
And yet franchisors can tell you what to spend on, how much to spend on and when to spend it and that benefits a franchisee how? Franchisors can tell you who you must buy from and stop you from sourcing other suppliers. Franchisors can own the suppliers and vendors they force you to use and take kickbacks from the ones they don't. Franchisors can set the price on anything needed for your operation. Franchisors can tell you when you must renovate or redecorate your establishment. The decor is fine? They had you do one six months ago? You don't have the money right now? Too bad. Franchisors can take your operation and sell it out from under you. You keep the debt, the franchisor keeps the proceeds from the sale. They can put another franchisee right next to yours and there's nothing you can do. The franchisors have no respect for you. You can read their posts throughout Blue Mau Mau. Tens of thousands of franchisees have lost billions of dollars. It's not a franchisee problem, it's a franchisor problem. From lemons like Quiznos and shady operators like Rick Schaden to "great" opportunities like DD franchisees have been left financially ruined and told it was their fault. You can't be the first to fail but you can be next.
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.
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 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.
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.
You can't answer even a basic franchise management question. Again, how would you manage change in a franchise system.
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.
Sorry this tirade of yours is fooolish.
Of course there are great franchise investments. You did not make a good choice.
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.
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.
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).
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.
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.
Wrote this a while ago and its still applicable today
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.
Your mistake was actually assuming he could think.
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