Franchising What are some of the worst Franchises ??

what are the franchises who closed up ? Or even worser the ones still trading and selling franchises but are unlikely to be here in the future?

I remember of course Cut Price Deli , Pie Face , and isnt Wendy's going ... Or gone !!!
What about those car window etching franchises.. They seem to have gone !!

Now to the franchises i have seen advertised that If i was a gambling man would say they wont be here in 5 years .
One called Tdda which is a drug detection franchise , apparently they go out to workplaces to check staff for drug tests... Cost of a franchise is over 200k...you would want to drug test a lot of companies to get that back !!

Another is the garbage cleaning franchise where you go around cleaning residential garbage bins ... Guaranteed $2,000 a week profit it says... Yeah sure .. Which week ?

What about those Yoghurt Franchises that are popping up ... Youghurtberry or similar names.

 

Those ones that sell cupcakes

 

A Cupcake franchise ? Actually cupcakes are very popular I have noticed .
There is a Cupcake store in Sydney CBD which has the most variety of cupcakes and its always crowded .
Yummy cupcakes !!!
My favourite is the red one .Red Velvet ? . Forget the name now but its yummy !!

 

The big franchise Gyms.

 

Steer clear of Datto Boy Pizzas. They won't last lol.

 

Friends of mine have done very well from the 24 hour gym franchise model...

 

True. Some can do very well. When we looked into it, 24 hour gyms didn't exist. It was bad from the trainer's POV

 

Curious to hear your thinking on this, all the ones I've seen are quite profitable.

 

For how long?

The market has saturated in a relatively short period of time.
Many non franchise gyms are converting to 24 hour access too.
Add in all the CrossFit boxes, functional training centres, etc, and some of these may struggle in future as they often don't have the ability to adapt to new market conditions, just like most franchise are restricted in their operations.

I see is as a bit ponzi, but that's my observation from having supplied gym & fitness equipment for the past decade.

 

For now they are popular. I suspect it will be much like the cheesecake shop and die out as people move on.

In the ones I have seen, I see gorgeous cupcakes and no customers.

 

In most businesses it is best to hit it hard for 5-10 years then look at other opportunities. Times changes, people change, new competition comes in. Few businesses stay good for a long time even with significant alteration.

 

Is the Cheesecake shop still around? I remember they used to advertise a lot.
How about Krispy Kreme ? They used to be everywhere !
Wendys have gone !! A lot of franchisers lost money with Wendys .

Yes the 24 hr gym franchises , Plus , Anytme etc wanting from 200 k plus for their franchises .
I remember about 25 years ago the gyms were going broke and they asvised you not to pay upfront, nowadays gyms are very popular.
Not sure if the Womens only gyms are a risky franchise investment though ?
Supppose it depends on what area suburb you are in .

But of course the big company Fitness First seems to have the dominance.

Remember Copper Art ? Are they still around ?
What about Real Estate Franchises , I dont see Remax around much anymore .

 

You clearly aren't in Perth... Krispy Kreme set world records when they finally opened here a year or so ago. Cheesecake Shop is still around as well. Wendys are also still around.

Every 24hr gym I've dealt with has made at least 100k p.a in profit. They are without a doubt the most consistently profitable franchises that I've seen. I might just be hitting an anomaly in the market though if others have seen them fail but I can't even recall any that have closed of all the ones I've driven past.

 

cheesecake shop is still around

 

For the amount of toilet paper they made people go through?

 

pie face
any book franchises
corner bottle shop franchises
wendys
those ice creameries without a major selling advtange eg wendys,
big/small pawn shops
video shops

 

Agree with this ... can't believe we've just had another gym open up in our local town centre ... a population of around 25,000 and there are now 5 gyms ... must've look at the state map of obesity levels and picked the fattest area.

p.s. if you ever want to feel supermodel slim, spend some time at the local shopping centre

 

Those 24 hour Gyms are going to tank and so will Perth.

Maccas and KFC are two looong term franchises that can weather the storm

 

I always wondered why the cheesecake shop and Leonard's chicken failed.Always people 2 to 3 deep in queue whenever i went there.