Franchising: to franchise or be franchised

I wrote this article in 2006. It is the product of an article I wrote in 1996. It has been published several times in industry magazines.

I believe many franchised business models are simply broken. High Franchise fees (and advertising and in effect many other scams) divert the financial returns away the person or persons who has contributed the physical capital into the mix to the Franchisor.

Target audience: business advisers; consultants; solicitors/lawyers; accountants; business brokers; someone wanting to buy a franchised business; someone wanting to acquire a franchised business as the Franchisor (get an idea what you are buying; ask the questions; are you buying something that is really broken), etc.

https://www.linkedin.com/pulse/franchising-franchise-franchised-copyright-don-e-gilbert-don-gilbert/

‘Captive to franchisors’: Franchise Council slammed for role in failed system – MATTHEW ELMAS / Friday, March 15, 2019

The Franchise Council of Australia (FCA) has a serious case to answer in the wake of yesterday’s damning Senate report into the franchising sector.

Identifying dozens of systemic failures across the $180 billion industry, the Senate committee report yesterday put a ring around years of exploitation in franchising but the revelations contained within aren’t news to business owners.

There have been numerous probes into the sector over the years, all of which have failed to tackle many of the issues the latest committee has raised.

Over that period the FCA, the “peak body” for the industry with considerable influence over everything from education to policy development, has allegedly failed to fairly represent franchisees.

https://www.smartcompany.com.au/industries/retail/franchise-council-slammed/