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Franchising vs. Control

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Vigilante

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This.

This is part of the reason MJ's commandment of CONTROL exists.

You can become huge in the franchise business, but that's no guarantee that it all can't be taken away from you. Even as a multimillion dollar franchisee, you still have almost zero control.

http://www.entrepreneur.com/article/241442

Why Wendy's Is Suing One of Its Largest Franchisees
 

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JAJT

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I look at franchises (as in, you open a location of your own of someone else's model) as really expensive high-paying, somewhat scalable jobs. It's very much like paying to join a company.

You may run a location but you aren't really your own boss. There's actually very little you can do outside of the box you are given. You get paid (in most major franchises anyway) very, very well and most 'owners' do run multiple locations once they get the hang of it, but you still have a boss and people to report to. You still have to salute when ordered.

I'd say they are great for aspiring business-people with zero desire to come up with things on their own who still want the prestige and pay grade that comes with being near the top of a career ladder. You still get to do lots of "business stuff" (hiring, firing, accounting, etc...) but don't have to think too hard about actual business decisions.

In short, you don't own a business; you fully operate a location. Huuuuuuuge difference.
 

Walter Hay

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This.

This is part of the reason MJ's commandment of CONTROL exists.

You can become huge in the franchise business, but that's no guarantee that it all can't be taken away from you. Even as a multimillion dollar franchisee, you still have almost zero control.

Why Wendy's Is Suing One of Its Largest Franchisees

Why Wendy's Is Suing One of Its Largest Franchisees
Having today launched my book "Franchise Your Way to the Fastlane" on the Marketplace I began searching for the many posts that I have made referring to franchising, and found this thread. No replies posted by me, so here are my comments:

Wendy's didn't lose control. In fact the court judgement issued in 2017 confirms the rule that Franchisors have the right to control the activities of their franchisees and that includes requiring them to conform to major changes in procedures.

The outcome was that DavCo Restaurants sold 140 restaurants to a company that has expressed willingness to do the upgrades specified by Wendys.

Franchisors are top dog in the franchise industry. I would never want to be one of the pack followers that buy franchises. See comment below on @JAJT's post/

http://www.unhappyfranchisee.com/
Just found this recently. Lots of dirt on franchising.

There will always be failures by franchisees and I comment in my book about the way some franchise systems are designed to fail!

I look at franchises (as in, you open a location of your own of someone else's model) as really expensive high-paying, somewhat scalable jobs. It's very much like paying to join a company.

You may run a location but you aren't really your own boss. There's actually very little you can do outside of the box you are given. You get paid (in most major franchises anyway) very, very well and most 'owners' do run multiple locations once they get the hang of it, but you still have a boss and people to report to. You still have to salute when ordered.

I'd say they are great for aspiring business-people with zero desire to come up with things on their own who still want the prestige and pay grade that comes with being near the top of a career ladder. You still get to do lots of "business stuff" (hiring, firing, accounting, etc...) but don't have to think too hard about actual business decisions.

In short, you don't own a business; you fully operate a location. Huuuuuuuge difference.
I agree. I would NEVER buy a franchise. It is definitely in many cases simply buying a job, although many franchisees go on to scale their businesses, and some create substantial wealth.

Being a franchisor is a vastly better proposition.

Walter
 

Kak

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We looked in to starting a chick fil a... We got pretty far into the process thinking it would be a nice cashflowong place to put money. The mandates on "ownership" were hilarious...

Among them, you have to work at the restaurant full time and you are not allowed to own any other businesses. It is a low 6 figure job.
 

amp0193

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The mandates on "ownership" were hilarious...

Among them, you have to work at the restaurant full time and you are not allowed to own any other businesses. It is a low 6 figure job.

Yeah, they're pretty strict on franchise owners.

I think it leads to a good customer experience though.

Every Chik-Fil-A I've been to has really impressed me. The attitude and culture they have among their employees is unique in fast food, and appears to be consistent from location to location.

I think that it surely helps to have full-time owner operators there overseeing things.
 

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