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The Greek restaurant franchise, Souvlaki Hut is yet another Australian franchisor to join the growing ranks of franchise brands placed into voluntary administration. Most recently Kleenmaid, Midas, Samsara, Kleins, Timbercorp, Baskin Robbins and Cookie Man in Australia all fell over but that is just the short list. Australian franchising is on a roll.
Voluntary administration has become an effective way to get out of disastrous arrangements and simply wipe away debt.
Souvlaki Hut is said to have recently signed 2 new franchisees and listed 36 locations with another 33 earmarked for expansion.
Poor retail sales, threats of litigation and disgruntled franchisees are being blamed for the collapse of fast food franchise Souvlaki Hut. SmartCompany
Ah no; from a bird of paradise to a feather duster.
Souvlaki Hut ranked third on the 2010 BRW Fast Franchise list, with revenue of $17.36 million and growth of 217.89%.
And Bill said;
You would think business might be hurt with that type of marketing, but honestly, the families have just been running through the door. You've got to be in people's faces, especially in a downturn. People have still got to eat.
Going belly up in franchising has become a recycling process. Disappearing debt and unwanted contracts – its magic!
Meanwhile over at barely breathing Cookie Man it appears that Mrs Fields might be the new franchisor.