I’ll admit it. Most of the time I am biased. I am usually out there trying to protect prospective franchisees. I try to provide tons of information to them about the realities of being a franchise owner. I also try to provide tips that current franchisees can use to grow their businesses.
It’s not that I’m against the franchisor. Franchisors provide that entrepreneurial spark — that service or product idea that they have systematized to sell to others. If it wasn’t for the franchisor, hundreds of thousands of people would never have had a shot at small business ownership.
I just try to level the playing field a bit. I like to see franchisors award, not sell, franchises to the right people. My feeling is that if the franchisor is extremely choosy about who becomes a franchise owner for their concept, that system will be one that prospers, and both parties can reach the levels of success that they want. Everybody wins.
The world of franchising is not perfect, and situations arise that challenge the “system.”
The $1 Burger King cheeseburger franchisee lawsuit is one such example. Franchisees are claiming that it costs them more than a dollar to produce said cheeseburger, and are angry and resentful that Burger King corporate is forcing them to sell it at a loss. Can you blame them? Aren’t these franchisees in business to make a profit? They’re suing for the right to do so.
In my recent web-interview with Fox Business, I was asked to chime in on the Burger King franchisee lawsuit, and you may be surprised by my comments. I also discussed the current credit crunch, and a couple of other franchise related topics in this short interview. After you watch it, I’d love to hear your opinion on the Burger King debacle. Who’s right?