Five Guys burgers franchise turns cold shoulder for some applicants
I know of a well established, intelligent, business person who submitted an inquiry to the Five Guys burger franchise team and was apparently blown off with a rather cold response. The franchise applicant received the feeling that whomever was in charge of Five Guys franchise opportunities was somewhat arrogant.
I’m only reporting the facts, but I have to admit that they have a damn good burger. Their concept is as simple as a junior high gym exam though. If you walk into one of their locations, I’d guess that there’s a 99% chance you’ll order a burger and fries. That’s it… burgers & fries. Talk about an easy franchise operation.
Don’t get me wrong, you have to respect the immense popularity, reputation and word of mouth they’ve established, but considering such humble beginnings, you’d think they could at least craft an appreciative form letter when responding to a Five Guys franchise inquiry.
There’s a report that they’re planning on opening 50 units in the Houston, TX area if you’re interested. Be sure you can pony up the $25K franchise fee per location, $30K development fee per location, 9% royalty & marketing fees, minimum 5 stores and $1M - $1.5M in build out costs. I’m not a mathematician, but that’s a slew of burgers to breakeven!
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In a comical battle of franchise heavyweights, Subway subs and Domino’s pizza (I mean Domino’s subs), the quick serve sub mammoth insists that the pizza king is falsely advertising claims of who has the consumer preferred sub.
Domino’s contests that opinion studies determined their subs (when did they begin specializing in subs?) were better than Subway’s, by a margin of two-to-one. The folks at Al Dente blog provided a witty take on this franchise battle.
In response to the Subway franchise’s attempt to put the kabosh on the Domino’s franchise marketing strategy, Domino’s CEO, David Brandon, revealed one of their secret recipe’s in this television ad:
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One of the franchise kings, McDonald’s, continues to post impressive numbers.
The Chicago Tribune reports, “Worldwide sales at stores open at least 12 months, rose a hefty 7.2 percent in the quarter.”
If you have the resources to fund an expensive venture, such as a McDonald’s franchise, you’re likely to enjoy a fine return on your investment. While I would give this franchise a favorable rating for neither their quality nor methods, you cannot argue that they haven’t provided a nifty profit for the fortunate franchisees.
You may have noticed quite a few units have been remodeled as there’s certainly a huge responsibility that goes along with being part of one of the most recognizable brands in the world.
I recall watching a report where managers at high grossing McDonald’s franchises earn significant salaries. Perhaps you should read the book Fast Food Nation by Eric Schlosser, but if earning a sweet buck is your only mission… well then, super size me!
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Franchise Owner: The Weekend Warrior Series - Part 2
In part one of the Franchise Weekend Warrior Series we discussed how we cannot always depend on our staff. This is a major variable that will keep you working the necessary off-hours in your business.
Why does a franchisee boss have to work those extra hours?
An important component of a franchisee business is keeping up with the paperwork. Not doing this important task has proven detrimental to many franchise business owners.
During this time is when a franchise owner must find a quiet place to concentrate on the financials, receivables, payables, contractual obligations, strategy, etc.
A perfect example to highlight the importance of this duty is an owner cannot always assume the billing for your incoming shipment is correct. In many instances, I’ve seen where the business owner should have received free shipping based on quantity order, but the vendor “mistakenly” included the shipping charge. Often, this charge will go unnoticed and reduce the bottom line for the franchisee.
When will a franchise owner have time to do the paperwork?
Unfortunately, this will most likely not take place during the typical 40 hours that you may have become accustomed to as a paid employee. A franchise owner will be far too busy tending to the daily operations and customers. Also, as I mentioned earlier, it’s important to find a time when you will not be distracted as tending to the paperwork requires serious attention and shouldn’t be taken lightly.
If after reading parts 1 & 2 of the Weekend Warrior Series you still feel committed to this goal then hang in there and you’re well on your way to fulfilling your dream of becoming a franchise business owner.
The Franchise Owner: Weekend Warrior Series can be followed at FranchisesThatSuck.com (stay informed by visiting thier website and subscribing to the feed)
Suing a large franchisor is a difficult task for franchisee
I have to agree with Les Stewart that a franchisee is going to have an extremely difficult task ahead of them in attempting to sue a franchisor. This statement obviously holds more value if the franchisee is not already a multi-millionaire.
Granted the legal system in the United States is a trusted model, it’s certainly not a level playing field when comparing those who have little resources and defendants or plaintiffs who are wealthy.
Evidence, positions and motive can be so manipulated by skilled litigators that’s hard to imagine placing yourself in a position against an adversary who has nearly unlimited resources.
A franchisee will find it in their best interest to do tireless research prior to signing any agreement and keep hope that their franchise deal will be free of legal chaos.
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I was wondering how long it would take before someone decided to replicate the Pinkberry concept and ride not only the wave of popularity, but also Pinkberry’s reluctance for rapid expansion.
Molly Maid cleaning franchise going strong in the UK
I’ve learned that the Molly Maid cleaning franchise is in its 25th year in the UK and has executed a tremendous number of contracts over that time span.
With so much bad new going on in the world and consistently dismal business reports, it’s quite refreshing to be able to deliver more good news on the Molly Maid franchise.
The Mirror.co.uk reports that the Molly Maid cleaning franchise has captured a significant share of the three billion euros domestic cleaning industry. While employing 200,000 people, this appears to be a franchise that benefits from not only strong brand recognition, but is also fortunate enough to attract dedicated franchisees with an impressive work ethic.
Are you already involved with a franchise? Is your franchise business slow? Are your franchise sales low? It may be time to come up with a new marketing strategy and not just simply relying on your franchise’s brand recognition to carry you through these difficult times.
If you’re reading this article off of my blog then there’s a good chance you know a little about how all of this new technology works.
Joel Libava, also know as the “Franchise King,” is offering a social marketing package to help get your franchise blog operating quickly and efficiently. While I do not know Mr. Libava personally, he does have rather impressive credentials and contacts.
I’ve noticed several Curves for Women, also known as Curves, up for sale and a few in our area have either moved or closed their doors. Apparently, Curves for Women franchisees are having a difficult time maintaining enough business to stay relevant in this competitive marketplace.
Owning a business in the fitness industry is certainly an inviting prospect, but how complicated is it to draw in enough members with the Curves current business model?
I found two super resources reporting on this particular franchise:
The team at Franchise Pick offered some insightful information from one particular Curves for Women franchise owner who has suffered throughout her agreement.
Also, I suggest exploring useful information provided from the crew at Unhappy Franchisee if you’re seriously entertaining this business segment.
As always, do your research and never enter into an franchise relationship with delusions of grandeur. Good luck!
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These staggering numbers are a testament to the severity of the economic crisis we’re faced with in our country today. Across many industries, segments and geographical locations, businesses are finding it difficult to stay afloat. Unfortunately, franchises are not immune to this downward cycle.
Business financing appears to be one of the defining challenges that’s paralyzing a great number of franchisees. Aside from franchise financing, sales numbers are down, simply due to the fact that people are not spending as much money. Then again, it’s difficult to spend money during these turbulent times, because many employees are fearing for their jobs. This vicious cycle can lead to a dire situation, which is why the Government is stepping in with huge rescue packages, in order to keep us from sliding into a depression.
One particular metro area suffering from these events is Detroit, where a number of franchises are folding or barely keeping their doors open. Rocked by the failure of the auto industry, Detroit franchisees have little good news to report.
As you can see, even proven business models are under massive pressure during this unprecedented time in recent history. With that in mind, there’s also opportunity to be had if one is fortunate enough to be armed with a smart business plan and strong financial backing. Quality employees, affordable rents, discounted wholesale items and negotiating leverage are on your side if you’re determined to make the leap into franchising.
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