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 […]
Keith Miller Testifies at United States Senate Banking Subcommittee Hearing
On March 17, 2019, Keith Miller, Principal, Franchisee Advocacy Consulting, testified at the United States Senate Banking, Subcommittee on Economic Policy hearing titled, “Economic Mobility: Is the American Dream in Crisis?” Mr. Miller discussed some of the obstacles in franchising that hamper the efforts to realize the American Dream, concentrating on the lack of financial […]
Franchisee Association Positions Itself as Power Broker of Papa John’s
Blue MauMau – by Don Sniegowski, November 19th, 2018 As large investors and rumors of private equity firms hover over the wounded Papa John’s International Inc. (NASDAQ: PZZA), franchisees have decided that they are in a good position to be the gate that investors pass through for a smooth transition to the future of the […]
Franchisee Association Files Complaint with California over New Jack in the Box Leasing Arrangement
Blue MauMau – by Don Sniegowski, November 19th, 2018 The National Jack in the Box Franchisee Association announced today that they have filed a complaint with the state of California over changes to their lease agreements that were made without their consent. The association, whose members own approximately 2,000 franchised restaurants out of 2,200 Jack […]
Franchise Owners Say Jack in the Box CEO Needs to Go, CMO Wanted
While there are no Jack in the Box outlets in Maine, it’s important that franchise owners are taking actions to advance their causes. Their strength comes from such a high percentage of outlets active as members of their association. Blue MauMau – by Don Sniegowski, October 9th, 2018 Franchise owners of Jack in the Box […]
Can Wendy’s Rein In Delinquent Franchises?
Rich Duprey of The Motley Fool reports that the third largest fast-food chain Wendy’s (NASDAQ: WEN ) wants to strip one of its biggest restaurant operators of its franchise agreement for failing to upgrade its restaurants and install a point-of-sale system. While it could result in the franchisee being forced to close or sell its restaurants, it also brings […]
Franchise Owners Beware: Despite The Myths, Franchises Can Fail
Bruce Kennedy, Benzinga Staff Writer reports that the recent Chapter 11 filings of two national restaurant chains, Sbarro and Quiznos, are drawing new focus on the opportunities and challenges faced by franchises. U.S. Census Bureau data from 2007 showed franchise businesses employed over 58 million U.S. residents, while bringing in revenues, sales, shipments or receipts of over $7.6 billion. And […]
Unions Protest McDonald’s Corp. and Certain Franchisees Alleging Wage Theft of Workers’ Pay
Janet Sparks writes at Blue MauMau that fast-food union organizers are once again protesting in cities across the nation. This time their focus has shifted away from higher pay for workers to “theft of wages” by fast-food corporations. Their main target on Tuesday was McDonald’s Corporation. While protesters gathered yesterday at the restaurants of the […]
Multiple labor lawsuits hit McDonald’s Franchisees in Three States
Mitchell Hartman of Marketplace Economy writes that McDonald’s faces lawsuits in three states this week from workers who allege the fast-food giant violated labor laws by failing to pay overtime, making them work off the clock, failing to give them breaks, and making them pay for uniforms or uniform cleaning. The suits, seeking class-action status, […]
Franchised Units Increase in Iowa 300% More than Adjacent States
The graphic below compares the growth of franchised Units in Iowa from 2004- 2007 to adjacent states and the nation. In 1994 Iowa passed a Franchise Practices act, the reaction from the IFA and Franchisors was to boycott Iowa, in an effort to show other states what could happen if you pass a Franchise Practice […]