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Old 10-16-2019, 02:43 PM
 
11,019 posts, read 8,417,851 times
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Quote:
Originally Posted by GhostOfAndrewJackson View Post
You are right, and that was before they started the nasty practices I mentioned above.

As I have told people for years when you vet a franchised concept you should not vet the current zor, but rather what the zor could morph into if they chose to utilize all the latitude granted to them in the FA. It happens often enough when a franchise is sold and a new zor suddenly enforces provisions that the FA allows for but previously not enforced or utilized.

I don't know the entire story behind this one.. But I know that 7-11 had, or has some pretty dirty practices when it comes to their franchisees as well.

Domino's, back in the day when they were owned by Monaghan or whatever his name was.. It wasn't all that bad, but they were strict about the dumbest things. The stores could only sell Coke or Diet Coke. That's it so far as drinks. And I seem to remember that it was a huge fight from the franchisees to get them to allow Diet Coke.

I worked at a Dairy Queen as my first "real" job in high school.. They were.. Fairly lenient.. The owner sold a polish sausage plate because his brother was a polish butcher and made, I must say, some damn good polish sausage. They allowed it. But he didn't want to have the "Peanut Buster Parfait" on the menu because too many people read it as "Peanut BUTTER Parfait".. Oh, they didn't like that any. lol. Held his feet to the fire on it. That and a some Big Mac like burger that had the 'special sauce' he didn't want to put on the menu and they forced his hand on that.


One more I'll mention that I doubt you've ever heard of.. Bonehead's Grill. A concept that was started about 5 years ago down Atlanta way. I think it was pretty much in line with like a Poke Bros, if you've heard of them. Grilled fish.. healthy stuff. They put out the concept and didn't have a company store, they were just selling the unproven concept.


Well, they put some of them in at locations that just made no sense at all. There were 4 or 5 around Atlanta. Perimeter, one was in a mall food court.. That one closed after a year. The Perimeter location lasted the longest.. 2 or 3 years. It's gone now.

There was one in College Station, TX if I recall. It actually didn't do too badly, but.. 2 or 3 years. I was surprised. I didn't think a college town was the right area for it.

The weird ones were Oxford, MS and Bentonville, AR.. Just didn't seem good areas. Now, maybe Oxford, but Bentonville?

The only one left is Pensacola, FL. God forbid that poor guy is still having to pay royalties back.

Last edited by Labonte18; 10-16-2019 at 02:51 PM..
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Old 10-16-2019, 04:49 PM
 
Location: VA, IL, FL, SD, TN, NC, SC
1,183 posts, read 328,995 times
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Quote:
Originally Posted by Labonte18 View Post
One more I'll mention that I doubt you've ever heard of.. Bonehead's Grill. A concept that was started about 5 years ago down Atlanta way. I think it was pretty much in line with like a Poke Bros, if you've heard of them. Grilled fish.. healthy stuff. They put out the concept and didn't have a company store, they were just selling the unproven concept.
Boneheads. It was part of the lunatic that created Raving brands. He was surfer with no real business experience, just a fast talking connish sale slickster who created a number of franchises, some of which were pure knock-offs. He never even developed a test store or had a single company unit. For one concept he was out selling franchises without even having a UFOC (FDD today)a violation of the franchise rule.

I met he guy at the airport once. He was loud mouthed obnoxious punk holding court and trying to pick up a flight attendant.

People like him are why the franchise industry is such a mess. Some years back a few of us banded together and tried to bring about change, but eventually gave up trying to educate people on how to perform due diligence. It really is sad.
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Old 10-16-2019, 05:02 PM
 
Location: VA, IL, FL, SD, TN, NC, SC
1,183 posts, read 328,995 times
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Quote:
Originally Posted by Labonte18 View Post
Domino's, back in the day when they were owned by Monaghan or whatever his name was.. It wasn't all that bad, but they were strict about the dumbest things. The stores could only sell Coke or Diet Coke. That's it so far as drinks. And I seem to remember that it was a huge fight from the franchisees to get them to allow Diet Coke.
For a brief while, I was a Dominos zee. It was done more or less to give my brother's kids a job after school and I ended up selling to my nephew when he got out of high school and decided he wanted to be a small businessman. He went on to become MUF for Dominos for about 15 years. By then they had radically altered the UFOC/FDD and FA and I warned him to get out. He got waylaid, as I predicted by remodels that were not productive and by being idiot enough to sign multiple tripe net leases. He went bankrupt.

Quote:
I worked at a Dairy Queen as my first "real" job in high school.. They were.. Fairly lenient.. The owner sold a polish sausage plate because his brother was a polish butcher and made, I must say, some damn good polish sausage. They allowed it. But he didn't want to have the "Peanut Buster Parfait" on the menu because too many people read it as "Peanut BUTTER Parfait".. Oh, they didn't like that any. lol. Held his feet to the fire on it. That and a some Big Mac like burger that had the 'special sauce' he didn't want to put on the menu and they forced his hand on that.
I know some old DQ zees and these things are money machines at least under their agreements. Somehow they have not had to keep up with the formats. I would love to see how their FAs were written as it is obvious they do not have to renew under the current conditions.

Every few years I get a client who wants me to vet DQ, it fails my test for a USP so I tell them to roll their own.

A few years back, I looked at buying out Tastee Freeze, but I could not get the price right. It really was a fire sale, but it seemed too much for me to bite off on my own and my would be partners ran into cash flow issues. I really think I made a mistake not acquiring it. One of my few laments.

Damn, but I love capitalism. What a country. It is awesome, opportunity is everywhere. And every SUF or small MUF zee should thank Donald Trump. Likely he preserved the entire franchise industry for the small operator. That flies under most everyone's radar.
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Old 10-16-2019, 05:18 PM
 
Location: VA, IL, FL, SD, TN, NC, SC
1,183 posts, read 328,995 times
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Quote:
Originally Posted by Labonte18 View Post
I don't know the entire story behind this one.. But I know that 7-11 had, or has some pretty dirty practices when it comes to their franchisees as well.
7-11 deserved the lawsuits. The trouble with so many zors is they get greedy and forget about win-win. In business all partners should eat at the table and no one should go hungry.

Frankly, why anyone would become a convenience store zee anymore is beyond me. Technology and the advance in rack jobbers has really made these concepts far more doable as a do it yourself operation. There are so many suppliers out there that the USP is gone (IMO). I am not sure what a zee is really buying that past the value proposition test.
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Old 10-17-2019, 01:58 PM
 
11,019 posts, read 8,417,851 times
Reputation: 14236
Quote:
Originally Posted by GhostOfAndrewJackson View Post
Boneheads. It was part of the lunatic that created Raving brands. He was surfer with no real business experience, just a fast talking connish sale slickster who created a number of franchises, some of which were pure knock-offs. He never even developed a test store or had a single company unit. For one concept he was out selling franchises without even having a UFOC (FDD today)a violation of the franchise rule.

I met he guy at the airport once. He was loud mouthed obnoxious punk holding court and trying to pick up a flight attendant.

People like him are why the franchise industry is such a mess. Some years back a few of us banded together and tried to bring about change, but eventually gave up trying to educate people on how to perform due diligence. It really is sad.

Wow.. I'm impressed you had heard of them, much less knew that much. I'm in the POS industry, so.. We wound up talking to many of the franchisees he got. I believe all of them felt that they were.. Let's see how to politely say it.. They felt they had been snookered. Promised the world, with nothing delivered.

I know nothing about the guy, but.. Did hear the stories and see the carnage.
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Old 10-17-2019, 09:12 PM
 
231 posts, read 52,647 times
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what about McDonald franchise?
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Old 10-18-2019, 12:14 AM
 
Location: VA, IL, FL, SD, TN, NC, SC
1,183 posts, read 328,995 times
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Originally Posted by mojo101 View Post
what about McDonald franchise?
McDonalds has moved strongly to a MUF model and most new opportunities go to multi-generational MUFs. The only new SUFs I know of are done for diversity purposes and are generally only available to those who worked in stores for years and already know the system. You also need a pile of cash, that means non-borrowed capital(minimum of 500K). By the way, McDonalds as a zor is more in the real estate game than the burger business.

McDonalds as a burger biz plays a unique game, they are what is known as a category killer in the business. They are the best at it. Altria, mentioned below is trying to learn that game, but McDonald pioneered it and is the best at it. But it does not play well with the zees and has led to great animosity over the years.

In my view the three best managed publicly traded companies in the U.S. are McDonalds, Altria, and Berkshire.

By the way you can become a Burger King zee still. Burger King has moved a great deal in the past 10 years. It use to be McDonalds had a lock on teh hipanics in term of the fastfood burger market but BurgerKing has now made huge inroads. Ten years ago it was looking pretty bad for them.

Last edited by GhostOfAndrewJackson; 10-18-2019 at 12:23 AM..
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Old 10-18-2019, 09:44 PM
 
8,319 posts, read 7,502,485 times
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But then how come McD, Wendys', and BK have dollar, $2, and $3 menus with wide selections?

I even see Wendys offering $4 combo meals.

A foot long deli sandwich cannot be that much more overhead. Its just bread which is cheap, and deli meats which is cheap. Isnt Subway just Boars Head?
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Old 10-20-2019, 06:44 AM
 
Location: VA, IL, FL, SD, TN, NC, SC
1,183 posts, read 328,995 times
Reputation: 2545
Quote:
Originally Posted by NJ Brazen_3133 View Post
But then how come McD, Wendys', and BK have dollar, $2, and $3 menus with wide selections?

I even see Wendys offering $4 combo meals.

A foot long deli sandwich cannot be that much more overhead. Its just bread which is cheap, and deli meats which is cheap. Isnt Subway just Boars Head?
AUV driven by USP, which Subway does not have. And Subway does not use Boars Head.
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Old 10-20-2019, 10:49 AM
 
231 posts, read 52,647 times
Reputation: 157
Boars Head,are you kidding,thats expensive meat .
I once ate a subway sandwich at the airport,by the time I get home,I am hungry again.
Once I was at a food court waiting for my apointment and have some time to kill,so I ordered a fish sandwich from Mcdonald,it has always been my favorite since day 1.
Now the fish tastes like cardboard paper,I looked around and try to figure how can any Mcmeals be filling ,well most are eating burger with fries and milk shake and maybe apple turnover as well,these are all carbo food,no wonder there are more diabetics these days.
stay home,and cook your own meal
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