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2/17/2014 6:44:49 AM Franchise opportunity  

jrbogie1949
Over 10,000 Posts!!! (13,851)
Ventura, CA
68, joined Mar. 2009


wondering if anybody else has ever taken advantage of a 'franchise opportunity'? i was looking for an investment a few years ago to supplement my coming retirement and ended up putting a lot of money into a nationally known auto repair franchise. i can't get into details because i and several other franchisees sued the company for fraud under the rico act, settled out of court and the settlement agreement forbids me from mentioning or disparaging the name of the company. not that i worry that they are monitoring dating site forums but you never know.

anyway, i found the 'opportunity' to be lacking severely in several ways and wonder if anybody else has had a similar experience.



[Edited 2/17/2014 6:46:19 AM ]

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3/30/2014 6:04:42 PM Franchise opportunity  
bigd44906
Mansfield, OH
53, joined Oct. 2010


Personally I've never been a big fan of franchises simply because you don't own them you're merely renting them from the corporation. You're highly regulated and cannot experiment for instance if you owned a Dominos franchise, you cannot experiment with different types of toppings, flavored crusts or creating anything on your own to sell to the public else you are in direct violation of your franchise agreement. Then the corporation can come in and take it away from you.

So for creative types, franchises may not be ideal but if you're the classic type who enjoys lots of routine and having someone show you a golden formula that works, well then apply money & elbow grease and you should be successful. However the last article I read on franchises suggest that since a lot of new franchises fail, the corporations aren't as willing to give them out as they were once used to because if you buy into one, and it fails, then the corporation has to take it back over and that costs them big $$$$$ which is not what they want. Thus what they're doing these days is looking to sell more franchises to successful franchise owners who already have a winning track record.

Be very careful with any franchise and please make sure you get proper legal representation to look over all paperwork before you agree to do anything. Those corporate lawyers are crafty b*stards.

Good luck and may your dreams come true!

3/30/2014 9:21:19 PM Franchise opportunity  
karrpilot
Over 1,000 Posts (1,926)
Oswego, IL
53, joined Jul. 2009


If you want the franchise to take over your life, than go for it. Remember, they do have the right to dictate to you the hours they want the place open. So if you think you are going to get perhaps a 4 day weekend off over a Thanksgiving holiday, guess again.

A neighbor of mine owns his own independent muffler shop. He has been talked to by a number of other name brand outfits, trying to get him onboard with what they had to offer. Every time, he tells them to put it where the sun doesn't shine.

They basically wanted him to only install their parts, at their prices. And the custom work he does? Well, that wasn't going to be happening any more.

Recently, his primary supplier changed hands. Upped their prices, and cheapened the product at the same time. So he cut a deal with another supplier, and that ended that.

Try doing the same thing while under a franchised agreement, and you will find yourself on the outside looking in.

3/31/2014 3:26:21 AM Franchise opportunity  
good_dr
Spokane, WA
53, joined Dec. 2011


I'm not sure if I would do franchise or not. I do telecommunications. Prime example. Cellular. I sell and install cellular boosters aka repeaters. Had a wholesale air time company approach me to sell their stuff. When it come time for a booth. Was told no boosters allowed.

I live in an area that not too far out of town in a few different directions and signal just drops.

Providers love to say that their service works, and at times no it doesn't. Personally I wouldn't want to deal with a corporation that is ignorant with my existing business.

3/31/2014 8:58:48 AM Franchise opportunity  

jrbogie1949
Over 10,000 Posts!!! (13,851)
Ventura, CA
68, joined Mar. 2009


franchise agents will point out that less than half of independents are still open five years down the road and that ninety five percent of franchises are still open after five years. i checked this out during my due diligence and indeed it is true. what can't be known unless you are the franchise company selling the franchise, is that in those five years the franchise has had two, three, four or more franchisees come and go. yes, the shop is still in business after five years but only after milking money out of several dumb bastards like me. lessons learned.



[Edited 3/31/2014 8:59:58 AM ]

3/31/2014 9:26:32 AM Franchise opportunity  

jrbogie1949
Over 10,000 Posts!!! (13,851)
Ventura, CA
68, joined Mar. 2009


obviously some franchise opportunities are fantastic. i have a buddy who flew joan crock, widow of macdonalds founder ray crock. he tells a story that set him up in retirement. one day mrs. crock came up to the c*ckpit and asked woody how things were going. he whined about his daughter being on drugs, his mother in law, how he couldn't seem to save for retirement and on and on. joan said 'aw, that's a shame, woody,' and returned to her seat. woody said to the copilot, 'damn, why do i do that. that woman has been fantastic to me and all i do is complain when she only wants to pass the time.

a few days after the flight the general counsel called woody into his office the next morning. woody didn't sleep that night think that he'd really f**ked up and was going to be fired. people who own 30 million dollar airplanes and pay six figure salaries to it's pilots don't want to hear what problems a pilot might have.

next morning he was early to the appointment and the general counsel looked happy to see him and ushered woody into his office with an arm over his shoulders. he tossed woody some papers and told him where to sign. woody think this was a severance agreement began to read and almost fell over. joan was giving him a macdonalds franchise in palmdale california. the lawyer said that she couldn' help with his daughter's drug problem or change his inlaws but she could do something about his retirement and didn't want woody to be thinking about such things when his concentration should be on her safety.

about a year later joan stepped into the c*ckpit and asked woody how things were going at his store.

'ah jeez, mrs crock, i can't seem to keep employers, one of my managers was stealing from the till. you heard how we got robbed one night about a month ago. people in palmdale don't have the money to go out to dinner, even macdonalds.

'aw, that's too bad, woody. sorry to hear it,' and returned to her seat.

next day the general council's secretary calls directing him to be in the office at nine in the morning and to bring with him all of his franchise documentation. another nights sleep lost as woody is thinking, 'now i really done it. the woman does everything she can for me and instead of showing my appreciation i can only b*tch, b*tch, b*tch. now i'm not only going to need to update my resume, she's taking back my shop.'

again the lawyer seems happy to see him the next morning and begins a little small talk about the dodgers and stuff as woody is sweating under his collar. finally the lawyer asks for his documents which woody hands over. he is handed back another set of documents which takes back the palmdale franchise and replaces it with one in santa monica a few blocks from the beach. joan died a couple years later and woody had no need to look for another job.