Open Anonymous Forum for Unbiased Discussion About Franchises
Posted by admin on October 10, 2009 under Articles | 
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Looks like even some bigger names are realizing that franchising is not all its been cracked up to be.
That its not the easy, never fail, cookie cutter works approach that franchisers are trying to sell you. Though franchisespeak.com has been saying it for quite a while now, its nice to see some validation.
http://www.entrepreneur.com/franchises/successstories/article203640.html
Posted by admin on February 5, 2008 under Articles, Young Chefs Academy | Be the First to Comment
With some of the comments about Young Chefs Academy on this site, a look at other franchisee problems needed at least a look. Here is one suit that happened about a year and half ago to a major franchiser. http://www.denverpost.com/business/ci_4702650
A group of Quiznos franchisees have filed a class-action lawsuit against the Denver sandwich chain in U.S. District Court for the Eastern District of Wisconsin. The lawsuit alleges that Denver-based Quiznos has “systematically defrauded its franchisees in a scheme designed to build the brand at the expense of its operators in the field.” The suit contends that the company forces franchisees to buy food and supplies from Quiznos or its affiliates at inflated prices while setting retail prices so low that franchisees can’t profit. The lawsuit also alleges that Quiznos omits or misrepresents key facts about its business operations when selling franchises.
Question?…
We can’t find an update to what has occurred since then. Any help?
Posted by admin on February 2, 2008 under Articles | Be the First to Comment
Many franchisees begin looking for a franchise with the attitude and ambition to startup your own business. Are you really starting your own business though?
No, you really aren’t. You are beginning a relationship with a franchiser where you get to use and extend the business model that they own and control. In reality, it really comes closer to resembling the relationship between a branch manager and corporate. Meaning that many major decisions will be forced on you and may or may not involve any input from you at all. Your local market can be helped or hurt by those decisions, however corporate the franchisor is looking nationwide and has more care about the brand as a whole rather than your own local profits. The biggest difference is that you are paying to get that job.
Do you, as the person wanting to start your own business want that relationship? The answer to this could very well be… yes! Many people desire guidance, desire major decisions to be handled by someone else, want structure and more dictated to them.
A true entrepreneur though may find this system way too controlling. If you have the ambition to start your own business, but maybe you lack the idea or you think a franchise will keep you from failing… ( If you think a franchise will keep you from failing read this : http://www.franchisespeak.com/top-ten-reasons-for-franchising ) … or maybe you even think that you really are starting your own business by franchising.
Well, read that UFOC, and examine it well. You’ll see that there is probably wording that also allows the franchiser to terminate your agreement for very vague reasonings. Showing that you can be fired as well. Does that sound like your idea of owning your own business? When you truly own your own business the only people that could fire you are the customers… by not showing up.
Also beware: the franchise broker you talk to may even play into those feelings and the emotion that goes into a major purchase like that. There was excellent article on fool.com today regarding the brains behind investing. Check it out here.
The summary though is that the “anticipation” of making money, is actually more rewarding than the “act” of making money. Meaning that when you’re in the market to purchase a franchise, you’re high on emotion and the ambition to make big money. Please do yourself a big favor and examine your personality and emotions to see if you’re even the kind of person who can handle someone else controlling what you thought was “your business“.
