As the AAFD nears the culmination of our 20th anniversary celebration, I happened to dig out an old TV news series about the franchise industry from our early days. We have posted these features on the AAFDtv YouTube channel, and viewers will be surprised that the major issues and risks surrounding franchising that are highlighted in the series are sadly still around.
The three-part news series by Susan Warnick called “Buying In, Losing Out,”. Each part of the series is only 5 – 8 minutes long and is really worth the time to watch. If you look past the dated hairdos and outfits, you might find that the stories of franchisees who have lost their life savings are familiar. That’s because these same problems still exist today.
Unscrupulous franchisors abound, happy to take money from a naive franchisee and either fail to deliver (as in the case of Express Lube featured in part two of the series) or provide a flawed business plan (like the Snap On Tools franchise featured in part three of the series).
Even well-known and popular franchises like Subway (featured in part one of the series) may give franchisees a poor location and fail to adequately market the brand in their area, effectively dooming them to failure.
It’s truly a shame that in the 20 years since this series was recorded, All Of These Franchise Problems Still Exist! If anything, we’re seeing more and more cases of broke and burned franchisees as the franchising model continues to grow and entice buyers.
These videos are worth watching. They underscore the essential need for effective franchisee associations to advocate for franchisee interests. They also demonstrate the importance of competent legal advice for franchise owners and prospective franchise buyers. Don’t forget that the AAFD offers resources to help franchisees to organize, to review your franchise opportunity, and to secure a franchise attorney.
Also, if you’re considering buying a franchise, don’t forget to read the AAFD’s Road Map to Selecting a Franchise, free on the AAFD website.[maxbutton id=”8″]