Franchising What are some of the worst Franchises ??

Discussion in 'Starting & Running a Business' started by Darlinghurst Boy, 7th Jan, 2016.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

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    More the point, have you looked at the icecream section of the supermarket recently? There are new products being released almost weekly, and they are good!

    You no longer need to go to a specialty shop to get good icecream for $5 for 1 scoop or $7.50 for 2 scoops when you can get 1L of good icecream from the supermarket for around $9 or $10 (often on special for around $6).

    Yes, you often get some more exotic flavours which is nice for a treat - but at $5 per scoop, I'm not going to pay for that often. Especially not for the kids when they're just as happy with a $50c soft serve cone from McDonalds.
     
  2. TMNT

    TMNT Well-Known Member

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    True.
    All these fancy flavours and stuff.
    I'm not a big ice cream fan but happy to demolish the odd tub of chocolate ice cream even if it's cheap brand

    I would assume that these speciality ice cream shops are to target the couple having a stroll or the family with young kids.
    But some of the flavours are damn good and unique

    But once in a blue moon for me
     
  3. Depreciator

    Depreciator Well-Known Member

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    Is have now walked past the new Chinese jelly tea place under TownHall perhaps 15 times since it opened at various times of the day. I am yet to see a customer there despite the alluring orange shop fitout and the four clearly very eager staff.
     
  4. TMNT

    TMNT Well-Known Member

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    I hear ya, but other than rent, their overheads would be miniscule
    1-2 staff only
    all ingredients are sugar and mushy stuff
     
  5. Simon Hampel

    Simon Hampel Founder Staff Member

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    Sign on the door at Subway on Hampden Rd in Artarmon

    2018-03-25 18.43.42.jpg
     
  6. geoffw

    geoffw Moderator Staff Member

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  7. Depreciator

    Depreciator Well-Known Member

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    - Prime spot with lots of passing traffic, so very high rent.
    - 4 staff every time I have walked past + a new, large inflatable character.
    - And over $100K in a fitout.
    I hope it goes okay for them, but I fear it won't.
    I just googled the name and I see it is a franchise, so they have those costs, too.
     

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  8. TMNT

    TMNT Well-Known Member

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    I hear ya,

    there are so many of these bubble tea type of franchises or shops, I too cannot work out how they manage to stay afloat

    I think itis one or more of
    - owner has deep pockets and doesnt really care
    - its a tax write off/front for something
    - migration visa
    - maybe they have peak periods eg after school
     
    Truly Exotic likes this.
  9. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    My flatmate just bought $22 worth of drinks there yesterday ... he bought me one , i didnt like it but its popular with people of Asian background

    Easytea ? Is another popular tea bubble franchise you see in the city

    Are those yoghurt shops still going?
     
  10. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    As for Subway there is a heap for Sale .
    Glebe Franchise has been for sale for over 2 years !!!!!

    I remember they used to have a Subway in Oxford Street on the corner of Brisbane street and Oxford street , thats now in memory !!

    I think Subway is going the same way as Pie Face, too many franchises .
     
  11. Depreciator

    Depreciator Well-Known Member

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    I walked past the tea place at lunchtime and there were over 20 people queued up. So it's working. I'm pleased for them. They now have a big blue inflatable mascot thing instead of a pink one, so perhaps that did the trick.
    Every single person in the queue was Asian. So perhaps it took a couple of weeks for word to get around and for the shop to become a destination (as opposed to just relying on passing trade).
     
  12. Simon Hampel

    Simon Hampel Founder Staff Member

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    Started seeing random ads on PropertyChat advertising DonutKing stores in South Australia (probably because I am in SA right now):

    upload_2018-4-18_9-12-39.png

    Not sure what this indicates. Expansion? Replacing franchisees?
     
  13. TMNT

    TMNT Well-Known Member

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    Couldnt think of a more Disastrous franchise to be involved in than donut King and a Wendy's

    Absolutely no differentiation of product.

    Other franchises would do every one of their products better or more famously
    And that doesn't mean cheaper wages or rents.

    I'm surprised any of these have customers
     
  14. TMNT

    TMNT Well-Known Member

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    The mascot looks stoned!!!!
     
  15. MyDarlinghurst

    MyDarlinghurst Well-Known Member

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    Is this the same company RFG who own these .?

    They re slowly going broke
     
  16. geoffw

    geoffw Moderator Staff Member

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    RFG owns Donut King. The local shop has disappeared.

    I'd say they were going broke quickly rather than slowly.

    They own Crust Pizza. I knew them when they started out in Canberra. All four shops were owned by different members of the same extended family.
     
  17. magyar

    magyar Well-Known Member

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    Anyone remember quiznos subs? They had really good subs but were only around for a year or so. They were the ones that originally were toasting their subs before subway ever started. Only saw one store about 10 years ago and it dissapeared real quick. Shame.


    "The Australian experiment of Quizno's, a submarine sandwich chain similar to Subway, is a rather sorry saga. Franchisees who had invested hundred of thousands of dollars met a bitter end in 2006, as the local arm went bust after spruiking untruths.

    Franchisees were promised by the company it had an "Australianised" menu, whatever that means, and that Quizno's had been trialled in the country for two years, when it had not.

    Long story short, a lot of money was lost and the only sub Australians now know is a Subway."
     
    Last edited: 19th Apr, 2018
  18. Simon Hampel

    Simon Hampel Founder Staff Member

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    I recall walking past one in Adelaide once and being curious about them - but never got to try them. Never saw any in my part of Sydney.
     
  19. geoffw

    geoffw Moderator Staff Member

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    Quiznos was (and I think still is) popular in the US. Wendy's tried to launch the chain in Australia but failed.

    The chain has managed to pull out of financial problems - it was hit hard by the GFC but managed to pull itself out of Chapter 11 bankruptcy.
     
  20. New Town

    New Town Well-Known Member

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    A couple of years back I saw a older couple excitedly setting up a small Goji berry shop at our local shopping centre. I instantly felt bad for them knowing they must have sunk a fair sum into this obvious bs fad. In three months it was gonski