Senator Catherine Cortez Masto (NV) has once again supported protections for franchisees by sending a letter to the Federal Trade Commission expressing her concerns with disclosure and franchisor behavior in light of the Covid-19 pandemic. The press release and letter can be found here.
2019 Dickey’s BBQ Update
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 […]
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 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, […]
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, […]