As a long time consultant in the food industry - and a current operator - I am gobsmacked by the alarmist attitude towards franchises herein. Like this is a revelation only discovered this week. As in everything, there are good and bad franchises, good and bad operators. Sometimes it's just bad luck (or other factors) but what I see often is franchisees who think it's a money machine and that they don't have to work. They go down very quickly. And while I agree entry costs are very high (fitout, agreement et al) it seems that the second owner gets it cheap until the fitout and franchise agreements roll around. Meaning not cheap at all. And for the record, I'm yet to see a franchise agreement that couldn't be decoded by competent Counsel, which, if you're spending any money on a franchise, you should engage.
I only ever want to know what could go wrong, once all that's covered and you can cope with the risk, go ahead.
Incidentally, Australia is leaking with food outlets, far far too many for the population. Some will go - lots actually, but the suite of brands in RFG seem robust and don't include too much high end stuff.
Let's remember this decline is the direct result of poor publicity not backed up by anything other than the experience of a very small number of franchisees, who, while deserving of a hearing, have elected to go to the media instead of the usual channels. And not everyone is a good fit either.
RFG Price at posting:
$2.85 Sentiment: Hold Disclosure: Not Held
