Franchising Franchise discussions

http://mobile.abc.net.au/news/2015-...nch-class-action-over-pizza-price-war/6622748

Now. Im never in the bandwagon of all big companies are the big bad wolf. And often i say "stuff happens" or "you didnt do enough research " or "you took a gamble, and it didnt pay off" to horror franchise stories

But this is pretty bad. It was out of the franchisees control of what the head office does.

I however dont give as much sympathy to the pie face franchisees as why you would get into one of those is beyond me

 

1. Franchising is a long-term cooperative relationship between two entities—a franchisor and one or more franchisees—that is based on an agreement in which the franchisor provides a licensed privilege to the franchisee to do business.

The franchisors want to make their money.
The franchisees paid for the privilege to operate under the license.
The franchisor has all the power.

What could possibly go wrong

 

Of course. But this is what i dont get

A failed franchisee is bad publicity.
A closed shop is 8% royalty of zero
Sure. They could find a replacemrnt fairly quicky however. There are resources involved for the franchisor even if the franchisee is paying for the fit out etc

I would have thought a profiting franchisee is more of a win then doing somethinf that will squash them

 

This paragraph sounds familiar to me....

He said many franchisees had been forced to give up their businesses because of the price war, which Pizza Hut had anticipated "because the strategy did not allow for franchisees to sustain their businesses"

I was involved in a well know franchise years ago that expanded rapidly...way to quick actually imo. A lot of franchisees had concerns about the location of the sites being sold as we knew it was going to be extremely hard to make these stores profitable.

I personally raised these concerns with the national operations manager and his reply...

"Yes I know these stores are going to struggle, but you know it's all about getting the brand name out there. If they put the whole family in there to work it could work out, but yeah it's gonna be a struggle"

There was no way these stores could sustain themselves. And they didn't.

 

Csn you reveal Which franchise?

Food?

 

Sounds like pie face

 

yes, I remember that one too. Anthony Koutfiides and the other footy player did it, the food was good, a tad overpriced,

maybe its just me, but I dont think any souvlaki franchise is going to work.

and I also agree with most food franchaises are going down economically.

amongst all of this dominos reported a 40% profit increase a few days ago, if I recall.

I think subways and boosts are going down.

all those new mexican franchises are closing down left right and centre

i wonder how those new vietnamese rice paper rolls and noodle ones are going?

 

It was a juice and smoothie chain.

 

I agree that you did Geoff. I was keeping updated with your posts on SS. As you mentioned, to much competition. Consumers want to try new products. This hasn't had an effect on only on the Franchise community but the big players as well.... Booze.

Castlemaine Perkin's, XXXX Brewery have all taken a hit and sales are lower because there is now a lot more variety in beer and beverage drinks. Hello Dan Murphy's.....the one stop shop for all your happy needs. This is one store I would be happy to be involved in.... think coles or safeway have some connection??

 

Dan Murphys is owned by Woolworths.

pinkboy

 

Pizza hit trialled it in new Zealand it worked extremely well(obviously). Dominos jumped the gun before they could start it first in oz and they followed. Neither franchisees are enjoying it. Deliveries are their saviour

 

There has been a Charlie Lovett (gourmet pizza) and a Pieface go broke on my local shopping strip in the last 12 months - in both cases the fit-out alone would have cost tens of thousands... all down the drain. I think there was a belief that it was a fail-proof business system to go by if you picked a reputable brand - but you are smart and have the cash to spend you could probably do better than buy someone else's pre-made idea.

 

Carlton and United Brewery brands such as VB, Fosters and Melbourne - once upon a time the only beers you could buy on tap here in Victoria - are now terribly unfashionable among the young 'uns of today. CUB losing their market dominance in Victoria would have been unthinkable in my dad's day... goes to show how there's no such thing as a sure thing any more.

 

Absoltely years ago. I asked a franchise lending manager at a big bank about his opinion on boost and he said it was a declijg business. Needless to say his prediction of it falling apart hasnt come to fruition but i beieve its also declining. I thought and stikl think its a fad

Im also surprised that mcdonalds is still surviving

As much as i like itm it seems we are heading towarda healthy eating and all the mcdonalds healthy food i ask myself. Why on earth would i go to mcdonalds to order the healthy stuff

All the new stuff doesnt really appeal to me to ne honest

I now prefer kfc and hungry Jacks

 

I think it may have more to do with XXXX being a terrible beer.