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: 465
Growth rate: –9%
Continuity: 50%
Franchisor Support: B
The irony is that the franchisees own the franchisor as part of the supply chain co-op. Either they need to sell of the franchisor part of the business or look for new management. It seems to me that being a franchisee owned company would be enticing to multi unit operators.
Keep in mind Jack Crawford the CEO of Ground Round was an outspoken critic of the franchise legislation that levels the playing field that was submitted in Maine and New Hampshire. One would think that a franchisee owned franchise wouldn’t be against legislation that makes franchise agreement more balanced. Maybe that would help Ground Round grow. The status quo certainly isn’t getting the job done.