RFG 1.32% 7.5¢ retail food group limited

The part about a Franchisor or Franchisee being profitable or...

  1. 737 Posts.
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    The part about a Franchisor or Franchisee being profitable or successful corresponding to the other failing and being unprofitable/unsuccessful is not true.

    Whilst the relationship between Franchisor/Franchisee does have certain aspects which are reliant on each other to be successful, such as sales. These are mutually beneficial for both Franchisee and Franchisor. Meaning the more a Franchisee makes, the more a Franchisor makes (contrary to your statement). Franchisor and Franchisee are intrinsically aligned.

    These franchisees that are failing are not failing solely due to franchise fees etc. Retail food and beverage market is highly competitive and there are various factors that play a much larger role in the success/failure of a business in this industry.

    Whilst RFG do have a responsibility in supporting and enabling their franchisees to be successful. They are not solely responsible for the success of a business. It seems some of these stories of bitter ex-franchisees are just people who's business was unsuccessful looking to point the finger at someone else.

    I am glad that RFG are working on improving the support they provide franchisees. Perhaps the process for application/approval of starting a franchise needs to be improved and stricter to better educate people and prevent them from getting in over their head.
 
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