Who has been involved with a Franchise ?

[buggerlugs]

http://www.news.com.au/finance/busin...-1227514066454
I have, a learning curve / apprenticeship into small business. After 24 months thou, I knew I wanted to be on my own..........

[Franco Cozzo]

Sounds like franchises are a load of crap.

Wouldn't mind being the guy who owns the franchise and is ripping everyone else off though

[marty351]

Yep, 7-11 is about as profitable as a Nigerian bank account.

[nstg8a]

Originally Posted by marty351

Yep, 7-11 is about as profitable as a Nigerian bank account.

Partly because their workers are only paid about $10 an hour

[Ford_The_Win]

There are easier ways to make money, surely?

[marty351]

Originally Posted by nstg8a

Partly because their workers are only paid about $10 an hour

I've heard as low as $5 per hour.

[aussiblue]

From assisting people who have got involved by providing financial advice my view is a few are just OK if you know all you are really doing is "buying a job" where you are the boss (and have all the stress) and that you will have to work very hard to make a reasonable living (you'll never get rich). This may be OK if it's work you really love. Most are a rip off and you stand to lose what you invest. If you do actually start making lots of money often the franchiser will just grant a new franchise that will share the market you have built and reduce your profits or even resume and resell the franchise

Do due diligence before you invest see https://www.facebook.com/australianfranchisingdisasters and https://www.accc.gov.au/business/ind...investigations and http://www.unhappyfranchisee.com and http://www.whichfranchise.net.au/ind...rticleID=488to start with. Also talk to other franchisees of the line you are interested in and look at how many are (desperately) for sale.

[aussiblue]

This is a good insight into a Subway experience http://somersoft.com/forums/showthread.php?t=75701 and they are probably one of the better franchisers (although they have their unhappy franchisees too). It also reflects the experience of those I know in other lines who felt that the deal was reasonable; they worked very hard long hours to make just a reasonable living.

[buggerlugs]

That ^^^^^^ was an interesting read........

[Bearman]

Very interesting reading. These franchises sound like very bad news indeed!!!

[danzvtil]

My dad was a VIP Lawnie for 20 years, which was disastrous, if he ran it as he was supposed to he would work for a full week a month just to pay fees for customers he already had.
He saw no incentive to want to earn more, grow the business, or get better at running things as all his fees would increase, and ran 2 sets of books until VIP finally kicked him out.
In hindsight he would have been better off on his own from the beginning, but had a young family at the time and needed a "business in a box" for some form of security.