There are good ones ....
Trouble is, its sometimes hard finding out who the good ones are. If you had a disappointing or poorly performing franchise, and you were hoping to perhaps sell it at some stage in the future to at least recoup some of your investment, would you tell people the truth - or would you put a brave face on it and a positive outlook ? Or at least be vague ? After all, who wants to do business with a loser ?
Like anything else in life, there are good and bad franchisors.
You have to be a certain type of person to be a 'franchisee' in the first place.
Franchisors with true brand credibility are few and far between. There are more benefits than disadvantages in the franchise model, provided you've done your homework
I know of one exhibitor ( who small remain nameless ) who had a stand at the Franchise show in Dublin in November 2004 ; about 14 poor suckers from around Ireland bought equipment and "exclusive areas" from the exhibitor at the Franchise show ; but none of the 14 people - all of whom invested a considerable five figure amount - were able to make a full time living from the business. Some are part time, some have disposed of the business at a loss or just do not bother to use the equipment. The sad thing is the organisers of the show allowed the same UK firm back to exhibit at the Franchise show in Dublin a few months ago, and the same UK firm was offering systems to anyone anywhere. Oh, and telling everyone their operator in England made stg £ 90,000 a year from the business !
Really ? I know another official in a financial institution who are wary of franchise businesses, everything else being equal. Its the bad and unethical franchisors who give the industry a bad name. The fact so many franchisees do not survive does not help.
I am not totally negative. I wrote for example "I would imagine that the big brand name franchisees in the fast food sector for example are profitable - even though they can be very expensive"Rabbit, where is this source of negativity towards franchising?
I posted on this topic before and I think it bears repeating. Less than 37/1600 franchises have over 100 units and been in business for over 7 years. Check out . It's an American site which gives the low down on franchisees/franchisors and the experience of many franchisees, some of it is just plain scary.
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