Franchising What are some of the worst Franchises ??

Is Michel’s Patisserie headed for the great big bakery in the sky?

Looks like **** is hitting the fan at rfg and other franchises

Obviously I haven't looked at the books on every franchise but I am surprised any of the following survived with high rents. Poor quality


Wendy's. Dunkin do nuts. Michels. Coffee club. Mrs fields. Muffin break, sumo salad, fancy fillings

 

First thing that came to my mind was "equity".

 

as in these companies have equity built into them, so a loss is only on paper?
or that its the franchisees that are losing money

 

I was referring to the equity in residential property they would have had to put up as security to purchase the franchise via the franchisee.

 

ok, got it, I was referring to the fact that if the majority of them were making a loss, then its a loss making busines sfor the RFG group, even if they are not bleeding the cash, it will be reflected on the company stock value, and it would have been cut loose by now

 

Yeah even Sumo Salad seems to be on its way out , never tried them but noticed a few shutting shop

 

am very surprised they lasted that long,

the subway equivalent of salads

hands up who'se actually been more than once,
I tried it once and thought, wow thats expensive for what it is

 

Macca seems to stand the test of time, it is a money printing machine if you own one
though not cheap you looking close to 7 figure or more

 

I didn't mind them if I was in a food court. Better than the standard greasy stuff or the chew and spew at the Chinese. You're right though, large salad (which didn't fill you up) and a drink was $17...

 

Anything related to RFG.

 

Yep - and Yep - tried it once and felt majorly ripped off

 

A high priced ice cream store on a side street is going to have a tough time heading into winter, but they would have anticipated that - hopefully. In the arcade under Sydney Town Hall there is a Pierre's and a Subway. I've been walking past them for about 6 years and they're still going, but never busy.
Curiously, two of those bubble tea places have opened nearby in the last week. I thought that fad finished a couple of years ago. We are on the edge of Chinatown and one of them is in a spot where a lot of young Chinese hang out, so it might do okay. The other one is in a high traffic spot in the arcade near Town Hall station. But it's the wrong traffic. Small shop, but they would spent $100K fitting it out. It won't last the year.

 

Hi

Could very well be franchisees that have signed a long contract with the franchisor so if they shut the doors they still have to pay monthly franchise fees for another 10 or 15 years and they may have also requested a lease to match the franchise term.

Perhaps they are just operating the business day to day to make their commitments or residency requirements?

Regards,

alicudi

 

Michel's at Warners Bay has won awards, hope they dont close down because their coffee is good, food i.e. cakes/sandwiches are always fresh and their staff friendly and obliging ...

 

I too wonder how on earth ice cream chains survive,

sure the margins are high, $2-$4 per scoop for something that must cost $15-$20 for a 4L tub,
especially those franchised ones where you have to buy from head office,
if its a non franchised ice cream shop I assume the cost price would be far lower,

with an average spend of $5, theyd make a good turnover in summer, however who wants ice cream in winter?

sure the odd person gets a craving,

Whats the point in roaring in summer just so you can profit enough to cover the losses in winter

it would scare the hell out of me to have an icecream shop anywhere

 

It's a bit like a business doing Depreciation Schedules - crazy busy for five months of the year and then ticks along for the other seven. At least our busy months are in winter. I would rather be busy at work in winter than summer.
There is an ice cream shop in Enmore that is always busy. It's called Cow and Moon. Often has a queue out the door. Lots of restaurants and pubs in Enmore, so plenty of patrons. One opened up in Marrickville a couple of years ago and does well. A lot of our local restaurants are Vietnamese and dessert is not their thing, so we'll sometimes get an ice cream. Around the corner is a small local bar that has live music and people who go there sometimes wander around the corner for an ice cream. Both these places make their own ice cream and are in good locations.
Scott