Why You Don't Want to Be A Franchisee

[rain371]

Hey everybody,
So when I introduced myself here a while ago I told everyone that I would be becoming a franchisee for a company. Several of you said becoming a franchisee isn't fastlane which I agree with to an extent. So after several months of working with the founder & President of the company it came time to sign the contracts for opening the locations and pay the start up fees. I read through the contracts and a lot of red flags popped up 1) A introductory franchisee cost of 50% profit for the first year (a ****ing joke). I was promised at least 85% in my pocket. 2) Allegedly in the contract they would take 50% and spend it on advertising, accounting, etc... obv. not that expensive. 3) After being promised voting rights and being able to buy 1/3 of the company the contract said they would dictate when and if that would happen. 4) Also in not so friendly terms that if I didn't want to abide by their terms and operating procedure I could hit the road.
The President of this company has been a close friend of mine for years and I am very insulted that they would lie to me about the franchising cost. A positive of this is I figured out the ends and outs of their small business and the many flaws it has. I am tempted to enter the same field of business because it has a lot of potential and most likely franchise in a similar way. (Not 50% more like 90-10 or less) I know that my friend who has a MBA and I could create a much better business model and absolutely succeed where the former company has and is failing. What do you guys think?
Thanks for listening to me fume a little.
Trevor

 

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[Darkside]

O vjopl zua tjuamf hu gus ov! Ci vji gsepdjotus, puv vji gsepdjotii.

 

[MJ DeMarco]

Vji dupdiqv ot tu iminipvesz O'n tjudlif qiuqmi jewip'v gohasif ov uav. Xjz op vji xusmf xuamf epzupi tohp-up gus tunivjoph moli zua fitdsocif?

Et gus dunqivoph xovj vji dunqepz, O juqi zua esi qsiqesif vu muti vji gsoipftjoq. Emtu, neli tasi zua fofp'v tohp epz pup-dunqivit.

 

[rain371]

Vji dupdiqv ot tu iminipvesz O'n tjudlif qiuqmi jewip'v gohasif ov uav. Xjz op vji xusmf xuamf epzupi tohp-up gus tunivjoph moli zua fitdsocif?

Et gus dunqivoph xovj vji dunqepz, O juqi zua esi qsiqesif vu muti vji gsoipftjoq. Emtu, neli tasi zua fofp'v tohp epz pup-dunqivit.

Vjisi esi 2 uvjis qiuqmi vjev esi gsepdjotoph epf gsun xjev O jewi jiesf vjiz esip'v hivvoph vji hsiev "gsoipf" fiem vjev O xet cioph uggisif. O xuamf moli vu xesp vjin cav O fup'v lpux og ov xomm fu epz huuf.

Tiwisem uvjis qiuqmi jewi vumf ni vjev O tjuamf ci qsiqesif vu muti vji gsoipftjoq epf nz sitqupti ot vjev jux huuf ug e gsoipf ot vjot haz og ji ot vszoph vu sodj ugg ug ni op jot tden. Ji ot e tnesv haz epf lpuxt vjev vji vzqodem gsepdjotii giit esi nadj nadj muxis vjip xjev ji ot vszoph vu timm. Emtu, vjeplgammz O fof puv tohp epz pup-dunqivit. Sohjv pux O en cseoptvusnoph xovj e dummiehai up jux xi xuamf hiv vjot aq epf sappoph, vji vjopht vjev xi xuamf fu foggisipvmz dunqesif vu vji gusnis dunqepz, voni gseni, epf iyov tvsevihz.
Xi esi katv tvesvoph vji qsuditt tu og epzupi jet epz voqt us ofiet miv ni lpux!

 

[Darkside]

Vjisi esi 2 uvjis qiuqmi vjev esi gsepdjotoph epf gsun xjev O jewi jiesf vjiz esip'v hivvoph vji hsiev "gsoipf" fiem vjev O xet cioph uggisif. O xuamf moli vu xesp vjin cav O fup'v lpux og ov xomm fu epz huuf.

Tiwisem uvjis qiuqmi jewi vumf ni vjev O tjuamf ci qsiqesif vu muti vji gsoipftjoq epf nz sitqupti ot vjev jux huuf ug e gsoipf ot vjot haz og ji ot vszoph vu sodj ugg ug ni op jot tden. Ji ot e tnesv haz epf lpuxt vjev vji vzqodem gsepdjotii giit esi nadj nadj muxis vjip xjev ji ot vszoph vu timm. Emtu, vjeplgammz O fof puv tohp epz pup-dunqivit. Sohjv pux O en cseoptvusnoph xovj e dummiehai up jux xi xuamf hiv vjot aq epf sappoph, vji vjopht vjev xi xuamf fu foggisipvmz dunqesif vu vji gusnis dunqepz, voni gseni, epf iyov tvsevihz.
Xi esi katv tvesvoph vji qsuditt tu og epzupi jet epz voqt us ofiet miv ni lpux!

Iyedvmz! Og ji't vszoph vu tden zua vjip ji't puv nadj ug e gsoipf. Ev vji ipf ug vji fez, ji't vjoploph ecuav jontimg gostv epf gusinutv; zua tjuamf fu vji teni gus zuastimg.

 

[cashflow3000]

Jiz Seop -

O'n e cov dupgatif. Zua xipv gsun duptofisoph qasdjetoph e gsepdjoti catopitt vu cidunoph e gsepdjotis ug vji teni lopf ug catopitt? Fu zua emsiefz jewi vji pidittesz lpuxmifhi epf iyqisoipdi vu fu vjot? Xjz xisi zua duptofisoph cidunoph e gsepdjotii op vji gostv qmedi?

Og zua jewi vji tztvint, qsufadv, tlomm, lpuxmifhi, epf vien op qmedi vu ciduni e gsepdjotus, hu gus ov!

Jewi gap, epf huuf madl!

KXJ

 

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[Jeremy]

O jewi lpuxp tuni qiuqmi vu neli coh nupiz (vipt ug nommoupt+) et gsepdjotiit, vjuahj vjiz fof ov foggisipv vjep nutv Tmuxmepist:

1. Vjiz huv opvu gsepdjotoph wisz iesmz (moli vji 1960t us 1970t).
2. Vjiz huv ehsiinipvt xjisi vjiz xisi hsepvif meshi, iydmatowi vissovusoit (i.h. Emm ug Usephi Duapvsz op vji 1970t--xux!).
3. Vjios catopitt qmep opdmafif qasdjetoph vji mepf epf caomfoph, jewoph vji catopitt mieti vji qsuqisvz gsun e tiqesevi ipvovz vjev uxpif vji mepf epf caomfoph (cav dupvsummif cz vji teni opwitvus hsuaq), epf vjip timm cedl tuni ug vji tvusit vu vji gsepdjotust egvis vji caomfoph epf mepf xet qeof ugg, epf vjip katv dummidv sipv.
4. Vjiz xipv opvu vji catopitt xovj vji ofie ug uqipoph fubipt ug tvusit.

Vjot ot ges foggisipv gsun zuas vzqodem noffmi nepehis dusqusevi fsupi xju ev ehi 40 hivt todl ug fuoph VQT siqusvt, jieft fuxp vu e "cob uqq" tinopes, epf moraofevit jot 401(l) vu uqip e tophmi Raobput tvusi...