Franchising What are some of the worst Franchises ??

Annual fee gets you 2 visits per week.
Extra sessions are billed at a discounted rate.
Casual visits attract a slight premium fee.

 

Lol^

Bad franchises I have seen are ones like Clarke Rubber. I know people that lost their house because of it.

Red rooster will be the next one that dies in SA.
There are chicken shops everywhere and people don't want to buy a $20 chicken when you get one from Coles for $10 and its fresher. They have recently started to Deliver though to drum up some extra business.

Gyms are definitely over saturated. I have heard of a couple that could be closing up.

Almost any Franchise is a bad investment in Adelaide. They are all far over priced for the return you get.

 

Really, is this still the case for someone buying franchises in suburban SYD/MEL in December 2015 onwards?

 

No idea as not my market, I can only speak for how well they do in Perth. I'm sure some, maybe even a lot, of the ones I haven't see don't do as well (no way of knowing, anecdotally I've never one close though over here though). If the market over there is far more saturated then that could change things.

 

Agree on Clarke Rubber - awful franchisor, from what I've heard.

 

Anyone know anything about Justcuts? Their site says a lot of their owners are multi-site owners, do not have a hairdressing background and don't need to work in the business...

From the justcuts site-

How much does it cost?
The cost of a franchise can vary between $160,000 and $250,000 and is dependent on the site chosen for the salon.

How long is the franchise agreement?
The franchise agreement is for a term of 5 years, or the term of your lease.

What payments are made to the Franchisor?
The franchise support fee is a fixed weekly fee that equals 12 haircuts based on the core price of a haircut. As well as this, you will be required to support the National Marketing fund by payment of 5 haircuts per week. Regardless of the number of haircuts you do each week, the fee remains the same.

Would I be required to work in the salon?
You don't necessarily need to work hands on in the salon. Depending on your experience and areas of expertise, you may choose to do so. The majority of Just Cuts owners take responsibility for the management and administration of the business and we assist you to recruit suitable team leaders to manage the operational areas of the salons.

How long does it take to open a salon if I decide to become a franchisee?
Depending on the site available, salon design and construction, lease negotiations and legal processes, it will generally take approximately 12-16 weeks.

How can I get financing to buy a franchise?
Upon completing a Franchise Enquiry Form, we can provide information on financing options available

 

Same but they finding it harder with a lot more competition out there now.

 

Steer away from Donut Shops. There are holes in their business model.

 

for me pie face, some of those gym franchises, especially the ladies only ones, kripsy kreme

 

What about OGALO

 

I had to google what that was, looks like its only in nsw,

I guess its a copy of Oporto and nandos

 

My advice from a business valuer is that the cheesecake shop is one of the most profitable franchises going. Think of their huge margins and the whole operation requires a lot less labour than a lot of food franchises. They also locate shops near but not in malls, therefore cutting down on rent overheads.

 

But not for long i guess.

 

And yet they are dying in NSW

 

I did the rough maths on therse and couldnt understand how they stay in busienss

22 per hair cut 20 mins
Pay staff 25 per hour

Rent overheads

You need to be booked out from open to close to be very profitable

Amazed how they stay in business

 

You obviously don't take much notice what a woman's cut/colour/blow-dry/product sale is worth every 4-6 weeks.......

pinkboy

 

haha yea I'm married and very glad to be a man

 

I thoguht it was like 100 dollars (being a discpunt chain) that would take 2 to 3 hours

 

Clarke rubber!?!?

Ivr seen like 1 in 10 years.

Cant fathom why anyone would want anythijg from there
Even tradied

 

Try $200 odd, and a single hairdresser can manage 3-5 at a time over a few hours.

Then you have weddings and function hairstyles.....

I'm not saying the business model is squeaky clean, but good hairdressers can make pretty good $$$.

pinkboy