Despite Churn, Franchises Continue to Sell Once again, I am reporting on the very high churn rate for Dickey’s BBQ, yet the brand continues to sell a high number of franchises. Why? Do prospective franchisees not understand the numbers in the Franchise Disclosure Document? And, why is the government continuing to guarantee loans to a […]
Liquidated Damages Clauses – Franchising’s Unethical Hammer
The franchise industry is unique in so many ways, but that is not always good. For most, buying a franchise, next to buying their home, is the biggest investment they will make. Unlike all other investments they make, they risk everything in buying a franchise, every asset they own, and then some. You ask, how […]
What Does It Really Mean to Be Named a ‘Top Franchise’?
Blue MauMau – by Jeffrey M. Goldstein, November 12th, 2018 Franchisors love rankings. Visit any well-known franchisor’s website, and you are bound to see a laundry list of rankings purporting to provide third-party validation of the franchisor’s superiority in its niche, if not in the franchise industry as a whole. Similarly, a Google search for […]
Can Dickey’s BBQ Franchise Owners Survive? Franchisees Claim They Received Misleading Numbers
Franchise owners of Dickey’s BBQ are closing at an alarming rate. Why is this, and can a franchise owner really make a profit owning a Dickey’s BBQ? Despite this, up to now, the franchisor has continued to sell a high number of new franchises. Can they continue that pace and keep their financials strong? And, […]
Gov. Brown vetoes bill to protect franchisees
Patrick McGreevy of the Los Angeles Times reports that Gov. Jerry Brown vetoed legislation to protect small-franchise owners against fast-food giants and convenience store chains, saying he needs more proof there is a problem before considering changes that would “significantly impact California’s vast franchise industry.” The measure by Sen. Hannah-Beth Jackson (D-Santa Barbara) would have […]
Forbes Magazine Rate 3 Real Estate Franchises are the Worst to Invest in.
A best and worst of franchising list is tricky to put together. The methodology is just as important as the objective of the ranking. For the FORBES “best” and “worst” in franchising, FRANdata considered demand for the franchise brand, success of existing franchisees and franchisor support from the perspective of “lender friendliness”. This brings up […]
Forbes Magazine Rates Ground Round as the 10th Worst Franchise to invest in
Forbes magazine rated the best and worst franchises to invest in. Forbes Magazine rated Ground Round based in Maine as the 10th worst franchise with a negative 9% growth rate. Here are the numbers Forbes represented: Serves up lunch, dinner and drinks; founded by Howard Johnson’s in 1969. Average Initial Investment: $1,672,500 Initial Training Hours: […]
Equity Extraction Schemes Live On in Franchising
The equity extraction scheme that was exposed by 7-11 Employee Kurt McCord brings back painful memories for me. The scheme is eerily similar to what was perpetrated against Dunkin’ Donuts franchisees from 1998 thru 2008. In that period it is estimated that Dunkin’ Brands extracted over $100 million dollars of franchisee equity from hundreds of […]
7-Eleven Whistleblower Alleges Predatory Practices
Sean Kelly at BlueMauMau reports that former 7-Eleven Corporate Investigations Supervisor Kurt McCord has dropped a bombshell in the lawsuit of 7-Eleven, Inc. v. Karamjeet Sodhi, et. al. McCord, an experienced loss prevention specialist who worked for 7-Eleven, Inc. for 7 months in 2013, has stated that he resigned because of “unethical and even unlawful missions” […]
Maine Senate Kills Franchise Protection Bill
Don Sniegowski Reports at Blue MauMau AUGUSTA, Maine – On Wednesday Maine’s state senate voted against Legislative Document 1458, the Small Business I nvestment Protection Act. In a vote of 24 against and only 10 supporting, the senators essentially killed the current form of the bill. Franchise owners in Maine have complained that their businesses […]