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Editor's Note: This article turned from a small news clipping with a few comments to hundreds of comments that are marginally related to the original posting. As such, I have moved it from a short-term news blog to a public forum discussion on PMD Furniture Direct. News stories come and go but forums are long-term discussions and debates on topics anchored around a specific company or issue. I would remind posters that this is a site that shares information to help readers make better informed business investments. It's not enough to say don't invest in this brand. The reader will naturally want to know from front-line operators what in this sector will make them the best returns on their investment. One last point: the Blue MauMau culture is one of civility. Readers like to focus on business issues, rather than individuals or personal issues.
Wow, invest $50K-100K and NET profit the first year is $269K!
Hosking [PMD Furniture Direct's CEO] added that PMD should stand out as a lucrative option when it joins the ranks of franchisors. He contended that franchisees of a national sub sandwich company have to invest $300,000 to $400,000 and make less than $100,000 in annual net profit, citing a PMD attorney who previously worked with the chain.
Some of PMD's current licensees, including startups, do much better. He said the company's top rookie last year was a Pacific Northwest dealer who made $269,000 net profit on an initial investment between $50,000 and $100,000. - Furniture Today
This is the best deal EVER! I wanna buy a franchise NOW! Where do I wire the money? If I wire $100K for 2 franchises, will I make $538,000 my first year?
Yet why are they losing so many licensees?
But with financial markets in turmoil, PMD's total network sales are down because it hasn't been able to replace the 20% to 25% of dealers it loses annually to attrition.