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. sanj

    sanj Well-Known Member Premium Member

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    Does it matter how long theyre profitable for if you're paying it off within 18 months?
     
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  2. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Are you saying that if you buy one now in the current market, you would likely pay it off in 18 months?
     
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  3. HUGH72

    HUGH72 Well-Known Member

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    KFC other than a drive through might go the way of the great Pizza Hut restaurant or Sizzlers.
     
  4. datto

    datto Well-Known Member

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    I'd like to see that. Maybe if the gym was bought several years ago. Some of these gyms are listed companies and it's well known that the market is saturated. Even I started going to these 24 hour gyms until the management realised I was using someone else's card lol.
     
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  5. datto

    datto Well-Known Member

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    Good point, but not ones in the city.
     
  6. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Most franchises have experienced good trading periods in their day.
    However, if not extinct already, many (not all), will realise sooner or later that their days will be numbered.
    Not dissimilar to boom and bust cycles.

    Sometimes boom times in certain industries can carry bad management, but when times turn, that bad management soon shows leading to collapse.
     
  7. sanj

    sanj Well-Known Member Premium Member

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    No I was talking about it in general, eg it's ok to invest in industries that might only have a short-ish life if it's highly profitable in the short term.

    From what I've heard from friends in the industry it's now blown out from 18 months to about 2.5-3 years, ie still a 33- 40% ROI provided u find the right site. That of course is increasingly difficult.

    I probably wouldn't invest in one now myself but I can see why someone already in the industry, with specific experience and economies of scale in terms of staffing, overheads etc, might.
     
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  8. BarneyRubble

    BarneyRubble Well-Known Member

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    KFC, Pizza Hut and Sizzler are all owned by the same company (in AUS) - Collins Foods. Indeed their most recent update they are decreasing the investment in Sizzler to focus on a new hot dog brand.

    None of these brands are franchises.
     
  9. Rumplestiltskin

    Rumplestiltskin Well-Known Member

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    As long as there is continued strong immigration from the pacific islands and NZ, KFC will never die and the only marketing plan they will ever need to follow is to keep making the buckets bigger.
     
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  10. sanj

    sanj Well-Known Member Premium Member

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    I dont think this is entirely correct. Collins owns most but not all kfcs and pizza huts; not sure about Sizzler. The first 2 are also still run as franchises of yum international which owns them worldwide. Eg Collins bought competitive foods a few years ago which was the largest kfc franchisee in the country i think
     
  11. Rumplestiltskin

    Rumplestiltskin Well-Known Member

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    They own 1/3 of all the KFC stores nationally, all of them in QLD, WA and NT.
     
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  12. TMNT

    TMNT Well-Known Member

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    the difference I see in comparing to booms is there are no franchises that struggle , and then go back to dazzling heights,

    they either start off strong, and die off, or start strong and remain strong,

    dont think there is a franchise that booms, then struggles and then booms again, unless major intervention or rebirthing
     
  13. Sonamic

    Sonamic Well-Known Member

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    What about a men's only gym? Firmwood has a ring to it.
     
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  14. Ace in the Hole

    Ace in the Hole Well-Known Member

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    You know what would really work well.
    A men's boutique gym/brothel combination.
    You do your strength training first and finish off with some rewarding cardio.
    You don't qualify for cardio unless you've put in a good effort in the gym.
    Great motivation to workout hard and keep coming back.

    This could be a genuine business opportunity.
    Memberships would sell well.
     
  15. The Falcon

    The Falcon Well-Known Member

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    Collins Food Group (CFX.AX) are killing it with their KFC franchises...they can't get enough of the stuff in QLD.

    I think historically a well located MCD is about as good as it gets.

    The gym franchise thing is a bit of a worry, I know a bloke getting into them when he already has a good business he'd be better off focussing on.

    Those Jims mowing things are a shocker, fancy paying franchise fees for that. But the worst one I think I have seen is a mob trying to franchise a stuffed potato retail shop...Yep that was it. Put stuff into potatos and bake em. Sign me up!
     
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  16. Sonamic

    Sonamic Well-Known Member

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    Memberships would be expensive. But so would be the post workout "trainers" hourly rate. But I agree it has opportunity possibility.
     
  17. Rumplestiltskin

    Rumplestiltskin Well-Known Member

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    They have comparative advantage in Qld in that they have access to the fastest growing, biggest eating, demographic that eat that type of heart attack inducing material.
     
  18. Truly Exotic

    Truly Exotic Well-Known Member

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    Sign me up

    Is your membership an annual fee or do you pay for gym session
     
  19. Sonamic

    Sonamic Well-Known Member

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    I would suggest an Annual Fee. Staff to keep etc. I wonder how much would be covered by Health Insurance.
     
  20. wogitalia

    wogitalia Well-Known Member

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    Have you seen the books on those gyms? Again I'm not sure where the perception on them comes from but it doesn't match the reality that I've seen. From what I've seen they're actually a pretty good option, you can put them under the management of a no skill guy (aka very cheap labour) and that's going to be your only other expense next to rent. They're about as simple a business as you can run, I can totally understand someone with other successful ventures buying several because you could quite plausibly run them in a few hours a week each if you've got even a decent understanding of how to use internet banking and pay wages.