Franchising What are some of the worst Franchises ??

In the same vein as @twobobsworth - both Maccas & Hungry Jacks are noticeable by their absence.

There were 2 Maccas in Lane Cove, 1 in North Sydney & HJ Chatswood - all gone.

 

That's another major issue new players have with these type of businesses. They can only operate successfully when well sited. If your lease is not tight, you'll lose everything.

Happened to a local Donut King near me recently, and also a friend who had a newsagents where the center was getting redeveloped and could not renew lease or find a suitable alternative location within his licensed territory.

That's the problem with this type service of biz, you need a prime high traffic site which is not always available.

 

Shavershop?

 

I'd rather pull my hair out.

 

Franchises are no different to property. You've got to buy the right one at the right time if you want to make money. My friend's dad made over $100m from McDonalds franchises. I've seen multiple people who've made millions on Dominos, Subway, Red Rooster, Australia Post, Newspower and other franchises. I've also seen plenty of people working 80 hour weeks to break even from those who just bought the wrong franchise.

 

Would not quite agree with that comparison.
A good property bought at the wrong time will still do exceptionally well in the long run.
A good franchise at time of purchase can easily turn bad over time.
Depends highly on the people too.
Some people would not know how to make millions given the opportunity, even if it was staring them right in the face.
There's always a way they will sabotage their success to remain in their comfort zone level.
An anyone who's made multi-millions in franchises would likely have been successful in non-franchised business models too.

 

zarrafas coffee

How they have got away with serving over extracted single shot in a medium "double shot" cup for $4.8 is beyond me.

if you order an extra shot it pushes it over 5 and then they double over extract so the milk is watered down and the coffee is bitter and sipid

I know I usually drink black anyway, but their bean is so ordinary need to have a cup that tastes like bigm so can swallow it

 

^^^ where does it say about over extraction etc etc?

if this were true, it actually goes to show that 99% of the population cant tell the difference between a decent coffee and a bad one, yet everyone seems to have an opinion on it

 

Horror at 7-Eleven: no compensation and no goodwill for franchisees

I dont know if this is true but if it is. Its pretty disgusting and scares the hell out of me to get involved in franchises

 

Why would 7-11 head office need to guarantee profits

 

Cheesecake Shop franshise just sold to Pag Asia for 76 million $$$ US.

 

That's a nice return to the founder or whoever started it. Their cakes were always another notch above anyone else. But that compete edge now seems to be much eroded

Maybe they got out at the right time?

 

Only one person makes money from a franchise.

And it is not the franchisee.

 

One of the owners of Leonard's is dead the other is doing time for murdering him

 

I assume if you are wanting to buy a franchise it is for lifestyle purposes. Unless you bought a McDonald's franchise over a a couple of decades ago, I couldn't imagine any franchisees selling their franchise territory for much more than they paid for it. So really you are buying a job with a system and some flexibility. But saying that if it's a franchise with staff then you would have all the issues that go with employing staff and so on. If I was to buy a franchise, unless there was opportunity to become a franchisor (salesman) and make some passive income, is only buy a one man gig franchise for lifestyle purposes. To get rich you need to start a business from scratch and build it up. Otherwise easier to be an employee and invest in other asset classes.

Please correct me if I'm working especially anyone with franchising experience as I'm always interest in franchise opportunities, but I have yet to find one which i believe I could sell for a lot more in 5-10 years.

 

Lol u could offer a buffet style membership- all
U can do type thing, knowing that the men will only need five or ten mins worth lol

 

i assume that if you purhcased a well performing mcdonalds at a fair market price , and if in 10 years it was doing the same,
this would be a great cashflow business, even if you sold it for the same price, and you wouldnt have to step one foot in there

 

Cup of sorrow: the brutal reality of Australia's franchise king


Scary reality of buying a franchise

I feel the same type of sympathy but far less for people who bought a dud franchise compared to those who have lost 50% in mining towns.

So sad

 

Why do people buy franchises, seriously?

The only thing that comes to mind is those inexperienced in business who want some form of hand holding support and fall for the promise of high returns and the “freedom” of being your own boss.

Cheap food type products which can easily be overshadowed by the new flavor of the month by the new kid on the block are just the worst of the worst to get financially committed to.