Unveiling the Franchise Reality: A Freshii Perspective on Business Ownership

Today, I've got an eye-opening video to share about franchises, sparked by a recent news article.

Now, let's shift our focus to the pressing issue of franchises. As you may know, back in 2015, I penned a book called Franchise Warnings, shedding light on the pitfalls and risks associated with the franchise business model. Fast forward to today, and we're confronted with a recent news article about a Canadian franchise giant, Freshii, whose ambitious growth plans took a hit, leading to a 50% drop in stock value.

Freshii's CEO, Matthew Corrin, aimed to almost double their store count in 2019, but the reality was a far cry from expectations. The blame game began, with Corrin pointing fingers at underperforming franchisees and slower-than-anticipated growth in the UK and US markets. This situation raised eyebrows, prompting me to explore the deeper issues within the franchise model.

The franchise business model often relies on rapid expansion to attract investors and drive stock prices up. However, the consequences can be dire for individual franchisees who find themselves caught in the crossfire. Corrin's insistence on closing the bottom 10% of stores demonstrates a stark truth: franchisees don't truly own their businesses; they are merely extensions of the franchisor's larger enterprise.

This brings me to a cautionary tale from the past. The Great Canadian Bagel, once hailed as a success story with over 200 stores globally, now stands with only 20 locations, highlighting the transient nature of franchise success.

When considering a franchise, it's crucial to align your goals with the franchisor's and understand the potential risks. Franchise ownership may not grant you the autonomy and control you envision, as the franchisor's priorities may clash with your individual business aspirations.

In conclusion, as you navigate the world of business ownership, stay informed and consider all aspects before jumping into a franchise opportunity. And if you're hungry for more insights, head to davidcbarnett.com and sign up for my email list to gain access to exclusive content, including my holiday chat videos.

Thanks for tuning in, and remember, true success comes from informed decisions and strategic planning.

Until next time.

Dave Barnett.