A call for reason

There has been an incredible amount written about franchises lately, with particular negative reference to RFG.

The Adele Ferguson article (and others) outline issues that have been in the public domain for a long time.

So, referring to Ferguson's article, some issues for me-
1. Why does someone enter into a contract and not do their due diligence?
2. Someone signed an unconditional contract without the financials?
3. Why do people believe everything they're told about 'goldmines'?
4. Why did they not speak to other franchisees in the region about the relationship between ee/or??
5. The business model is no more brutal than that between producers and Woolies/Coles. Or you could try and speak to people who tried to get on time payment out of Kerry Packer.
6. A 'number of Pizza Capers stores are for sale"? So what? They shouldn't be?
7. Who takes all their staff for lunch if they're broke?

Business is brutal, over every category, all over the world. The Ferguson article states that many stores are for 're sale', meaning the original franchisee wants out. One states it was his 'dream' to own a business. Yeah, and I wanted to be David Bowie too. People think that they make burgers and coffee at home, so it can't be that hard. God, how many times have I heard that.

Anyone who reads my posts on HC will know I'm rarely brutal, but this is an industry I've been involved in since 1981 and I know a LOT about. So there's cause and justification for some forthright opinion, with the hope that these recent negative media bits are placed into some kind of perspective.

Again
1. The franchise model needs to change. Get on with it and do it. It will help everyone. Be the leader. But it's not the end of the world at the moment. Shopping centres also need to take a haircut.
2. People entering into agreements as a franchisee need to grow a brain. It's not for everyone. Just because you can access money and have a 'dream', does not ensure success.
3. The Ferguson article is typical of the type. Victimhood persepective reigns supreme in this country at the moment. No analysis of the franchisees business history was offered or discussed either. Outcomes based bs again.
4. The fact that the article cause such a sell off proves that people are emotional with this stock.

While it's sad and sometimes tragic for ex franchisees at some point you have to get over it and move on, or you'll destroy the next business you buy too.

The history of the world is the victory of the heartless over the mindless.