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, […]
Is Dickey’s BBQ Franchising’s Next Quizno’s? 28% Systemwide Churn
It’s not easy to forget the Quizno’s saga. Once one of the darlings of the franchise industry, growing through franchising to nearly 5,000 locations, but today, just under 400 in the United States. Many franchisees lost everything (investments, savings, their home), and as stores closed, eventually the franchisor filed for bankruptcy protection. Yet, has the […]
The Franchise Industry, Heavily Regulated? – Shattering the Myth
All of us have heard the argument: franchises are in a heavily regulated industry. Really? This paper will attempt to briefly clarify what is specifically regulated, what isn’t, and is it enough considering those investing in a franchise not only risk their investment, but likely all their assets. We hear the Federal Trade Commission (FTC) […]
Franchisees, Is Your Operations Manual Changing Your Franchise Agreement?
As franchise owners, we all sign franchise agreements that set the terms and conditions of our business, and the relationship with our franchisor. Most of those franchise agreements contain a condition that you will follow the then current Operations Manual. While it is understandable that the Ops Manual must change, a new sandwich is introduced, […]
Do Franchise Owners Really Own a Business?
Do franchise owners really own a business? That is a very important question. The franchise industry talks about franchise owners as independent business people, working for yourself, but not by yourself. But, what does ownership mean? Usually, if you own something, you have value, or equity, that you can sell. Historically, most franchise agreements contained […]
California Enacts Strongest Franchise Protection Rules in the U.S.
BLUE MAUMAU– Governor Jerry Brown of California signed a new franchise protection law Sunday afternoon that gives California franchise owners the strongest rights in the United States. The law protects franchise owners from franchisors who seek to terminate their business on a whim or who desire to take possession of a lucrative franchise without compensating the […]
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 […]
Help SB610 become law in California!
On August 21st, the California state senate voted 23 – 9 in favor of SB 610, a bill that strengthens franchisor good faith relations with franchisees. In order the turn this important piece of legislation into law, it is crucial that all franchisees express their support of the bill and ask the Governor to allow […]
Franchisee Sues for Lack of Fair Dealing, Marriott Settles
BlueMauMau reports that It seems that not all is clean and good at Marriott. CNBC explores the Marriott Empire in its hour-long “Behind the Closed Doors of Marriott.” In the three minute video clip* below, one large franchise owner explains his lawsuit regarding legal traps, bad faith, fraud, breach of contract and hidden rebates to […]
California Senate Sends Fair Franchising Bill to Gov. Brown
Don Sneigowski of BlueMauMau reports that The California state senate voted 23 – 9 late Thursday in favor of SB 610, a bill that strengthens franchisor good faith relations with franchisees. It is now ready for Governor Jerry Brown’s signature to become law. Although its proponents considered the bill a small tweak in franchise law, […]