G
Guest-5ty5s4
Guest
If Franchisors have such an amazing business model, how can they possibly go bankrupt?FRANCHISORS FAIL and when they do it is not always only the loss of their business and investment that the franchisees suffer. In many cases, the failed franchisors seek to blame their franchisees for failure of the system, and in doing so they sue them!
Who would have thought that a franchise as successful as Bennigan's would ever file for bankruptcy? Or Mrs Fields Cookies? Or what about Curves? - probably one of the fastest growing franchises ever. See this : CURVES: The Rise & Painful Fall of the Curves Franchise Chain
For those with no previous interest in franchising, or with poor memories, here are a few more well known franchisors who declared bankruptcy: 7-Eleven, Baker's Square, Boston Market, Ground Round, Denny's, and Burger Chef.
Ground Round was a somewhat unusual case in that many franchisees banded together and formed a cooperative to maintain operation of the system under their control and that saved them from a huge loss.
Most of these failures are history, but some are quite recent and ongoing.
I repeat: Never think that buying a franchise is a secure investment.
I also repeat that selling franchises of your successful business enables what is probably the fastest scaling possible.
Walter
Also, why not just do better due diligence as a franchisee?
If buying a franchise is always a bad deal, does that mean selling franchises is a scam? (I guess that would be like the never-ending MLM debate)
Also, it looks like what my original post described may have been more like a Master Franchise!
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Last edited by a moderator:
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today