Politician Spock
Footballguy
Franchise agreements are for the most part unfair for the franchisee. The agreement pretty much makes the franchisee take all the risk, yet have very little say in how the business is run.And?Pretty standard royalty here.Nope. Just the franchisee owner. Five Guys gets 6% of every dollar regardless of whether or not the franchisee makes a profit.Had lunch there today, was a ghost town. 5 guys has to be hurting
Wants some more peanuts? Need more fries?I read your post as implying that it was somehow unfair to the franchisees. If that's not what you meant than disregard. Although if franchisees are struggling to make a profit corporate won't be around very long. Unhappy franchisees make it hard to grow or sell more franchises.
But yes, you're right that is pretty standard. For some brands, it's been great. For many others, not so much... and part of the frachise agreement is that you legally must stay silent about your negative experience if you lose your ###. In fact, many franchise agreements require the franchisee to waive their right to resolve differences in court. If the public were privy to the negative side of franchising, it wouldn't held in the positive light that the public seems to hold it. It's just as much of a crap shoot as starting your own brand from scratch... if not more so.
I read your post as implying that it was somehow unfair to the franchisees. If that's not what you meant than disregard. Although if franchisees are struggling to make a profit corporate won't be around very long. Unhappy franchisees make it hard to grow or sell more franchises.