Loading ...30 % of the Franchises are losing money …Now corporate wants breakfast ..all day…causing havoc in the Kitchen increased labor requirements …then add in the administration hiking min Wages ….and what you got is Central Government running a Hamberger Stand and all thats implied…
The franchisee puts all the money up ,takes all the Risk,does all the LAbor ..Franchisor gets a guarantee with fees based on GROSS SALES,and RENTS and while Central Government MANDATES labor cost ,empployment rules & regulation but forgot to tell the PUBLIC THEY are going to pay MORE !
Nobody wants a per centage of NET PROFIT ..they all want a percent of GROSS SALES including the LICENSE FEES for business Licence Franchise FEES Payroll insurence based on % of Gross Everybody wants a % of the GROSS and then there is NO NET PROFIT….
Been there ,done that ………..Now Walmarts in the same bag …..Everybody wants a % of Gross (its also called Income Tax) if you think about it . NO NET PROFIT OR (TAKE HOME PAY )…
My accountant used to say your first expense should be net profit !
I ran a Dunkin Donuts for 25 years same shit different name ….My first expense was ME and I never lost money……AFter the Parent company bought me out in the next 3 years they lost 3 million…..doubled all the prices cut the number of customers from 9000 a week that I built up to.. down to 4500 customer a week when they finally closed it…
and THEY hired a guy with a MBA from HAARVARD to run it….He came to work everyday in a 3 piece pin stripe suit …to run a Donut shop …It was so funny and sad at the same time ..What took me 25 years to build they destroyed in 3 …..