Aristotle said that all persuasive arguments have 3 common elements, and he
gave these elements some great names (which suspiciously sound like the names
of the Three Musketeers):
This article provides a brief history of some well-known franchisor
bankruptcies of recent years -- including Denny's, Bennigan's, Steak &
Ale, Original Roadhouse Grill, Cork & Olive, The Ground Round, Church's
Chicken, Popeyes, and 7-Eleven -- with a look at the outcomes of these
bankruptcies for both the franchisors and their franchisees.
However, once the ribbons come down and time passes, franchisees begin to
recognize the challenge ahead and that, in many ways, they're on their own:
regardless of the amount of support their franchisor provides, the franchisee
is ultimately responsible for generating sales for his or her new business.
Of course, new concepts and geographically-focused concepts may have no or
only a limited number of franchisees. These opportunities should not simply be
avoided wholesale; however, in these cases it will be particularly important
to have candid and open discussions with the franchisor’s owners and
representatives.
The brand of adult shop that the newlywed couple launched after returning from
a year-long tour of duty in Iraq was inspired by what made them uncomfortable
about other adult shops.
A franchise is only as good as its brand name, which eventually determines the
performance and success of other franchisees within the system. Aside from
happy franchisees and a strong brand, another indicator of a strong franchise
is one that utilizes a broad recruitment process, which at some point replaces
the selling process so only the best prospects gain entry into the system.