Buy 1 franchise, get 1 free
That sounds awful, doesn’t it? Well, get used to it as it seems it’s going to be the new trend in franchising during these tough economic times…
According to an article by the Baltimore Sun:
Franchise companies, facing what many say is the toughest economic environment they’ve seen, are offering two-for-one deals, reduced fees and financing help to woo new buyers. They are also paying existing franchisees to help spread the word.
While I can understand and agree on financial incentives such as reduced franchise fees and financing help, I am strongly opposed to giving away a franchise when one is purchased.
The reason? Simply because it doesn’t make sense financially speaking. Yes, the franchisee will have a free franchise, but did this franchisee want to get 2 franchises in the first place? Most likely not. So now, instead of having to pay overheads on one franchise location, our poor new franchisee will have to deal with 2 locations.
I hope that new franchise buyers will not be duped by this dangerous lure.
Filed under: Franchise Talk
[...] although some franchises are using arguable tactics to attract new franchisees, it seems that banks are not rushing to finance those new franchisees. [...]
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I agree. It does sound awful.
A BOGO degrades the entire franchise system. What it does do is expose the fact that the franchise is only worth half what they were charging in the first place.
Hello Jim,
Something crazy happened to me to a franchise show a couple years ago. I was still working at Franchise.com at the time and I was pretty much walking around the floor to talk to franchisors and try to get them on board.
This one franchisor (I will not reveal the company name) told me that he would buy my service (lead gen) if I accepted a franchise from him. Accepted a franchise?? Yes, he was giving away his franchises!!!
To me that is the best way of driving your franchise right into the wall by giving away franchises to people that may be totally unqualified.
I haven’t seen this franchise at the last show. I wonder where they’re at right now…
Sebastien
[...] I’m glad to see that some franchisors are really screening out their potential franchisees… not like some other franchises we talked about before… [...]
Howdy this is kinda of off topic but I was wanting to know if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding know-how so I wanted to get advice from someone with experience. Any help would be greatly appreciated!