프랜차이즈 투자 상담의 환상

프랜차이즈를 창업하고자 한다는 것은 결국 본인의 자산과 결부된 것은 물론이며, VCSFA 기사를 통해 아시다시피 궁긍적으로 많은 골칫거리를 일으킬 수도 있습니다 .  감사하게도 이러한 가맹점 창업에 대해 이미 많은 경험과 노하우를 똑같이 지닌 상담가로서 예비 초보 창업자 분들에게 – 몰룐 나아가 본인 뿐만 아니라 가족들 또한 , 미칠 영향에 대해 오지랖 넓게 한 마디를 드리지면, 정말 안타깝게도 보통의 가맹점 체험의 기나긴 여정의 끝은 시간은 물론이며 마침내야 이미 많은 돈을 지불하고서야 그 값진 경험에 대해 깨닫고 맙니다 .
여기 피해사례의 한 예로 집과 결혼 , 비지니스 파트너 및 건강은 물론이며 $ 1,000,000 가까운 자산을 잃은 등의 간접적인 피해사례 체험을 통해 VCSFA 에서는 여러분들 돕고자 , 이러한 똑같은 사례 예방을 위해 충분한 상담과 정보를 제공합니다 .

물론 가맹점 창업에 대한 상담은 오직 비단 창업 상담에 대한 것 뿐만이 아닙니다 .  그것은 보통의 비지니스 창업의 고통스러운 것 이상이며 일부 새내기 창업자들은 이러한 독특한 가맹 주와 창업주의 다양하고 복잡한 불공정한 거래의 현실 및 구조에 대해 전혀 알지 못하고 있습니다 .

또한 VCSFA 에서는 여기 창업주 상담자들은 여러분들의 더 나은 결정뿐만 아니라 , 나아가자면 법률 상담가들에게미리 지불될 수 있는 금액 또한 세이브 할 수 있는 여러 가이드라인을 제공하고 있습니다.
그 말인 즉슨 , 여기 법률가 또한 ‘ 귀에 걸면 귀걸이 코에 걸면 코걸이 ‘ 식의 100% 해석 불가한 거래조 건들이 무수히 많기 때문입니다 . 또한 이러한 무수한 불공정 계약 조건들은 아마도 값비싼 레슨을 통해 개인적으로 겪어보지 않았으면 모를 법한 부분들이 많기 때문입니다 .

그러므로 여기 절대적인 도움이 필요하신 초보 창업자분들의 신중한 고려와 절대적인 투자는 여기VCSFA 프랜차이즈 상담가와 함께 하셔야 합니다 .

< 프랜차이즈 상담 및 도움말 : info@vcsfa.ca 이메일로 연락 바랍니다 .>

‫چيست‬ ‫‪Franchise

‫؟‬ ‫چيست‬ ‫‪Franchise‬‬
‫مخصوص‬ ‫حق‬ ‫‪:‬‬ ‫معني‬ ‫لغت‬ ‫كتاب‬ ‫در‬ ‫كلمه‬ ‫اين‬ ‫مفهوم‬
‫از‬ ‫بعد‬ ‫و‬ ‫كرده‬ ‫فراهم‬ ‫شركتي‬ ‫يا‬ ‫اشخاص‬ ‫يا‬ ‫شخص‬ ‫كه‬ ‫است‬ ‫اي‬ ‫حرفه‬ ‫و‬ ‫شغل‬ ‫معني‬ ‫به‬ ‫عامه‬ ‫اصطلاحات‬ ‫در‬
‫خاص‬ ‫قراردادهاي‬ ‫طي‬ ‫(‬ ‫شريك‬ ‫نه‬ ‫و‬ ‫)‬ ‫خود‬ ‫كارگزار‬ ‫عنوان‬ ‫به‬ ‫را‬ ‫اي‬ ‫عده‬ ‫‪،‬‬ ‫آن‬ ‫نسبي‬ ‫معروفيت‬ ‫و‬ ‫توسعه‬
‫‪.‬‬ ‫گيرد‬ ‫مي‬ ‫كار‬ ‫به‬ ‫بيشتر‬ ‫سود‬ ‫كسب‬ ‫و‬ ‫فعاليت‬ ‫توسعه‬ ‫جهت‬
‫عملا‬ ‫كه‬ ‫‪،‬‬ ‫كند‬ ‫مي‬ ‫بيني‬ ‫پيش‬ ‫خود‬ ‫براي‬ ‫را‬ ‫ي‬ ‫مخصوص‬ ‫حقوق‬ ‫‪،‬‬ ‫آن‬ ‫با‬ ‫مرتبط‬ ‫بندهاي‬ ‫و‬ ‫قراردادها‬ ‫اين‬ ‫در‬
‫‪.‬‬ ‫گيرد‬ ‫مي‬ ‫خود‬ ‫دراختيار‬ ‫كاملاً‬ ‫را‬ ‫او‬ ‫و‬ ‫بندد‬ ‫مي‬ ‫طرف‬ ‫همه‬ ‫از‬ ‫را‬ ‫كارگزار‬ ‫دست‬
‫يك‬ ‫به‬ ‫تبديل‬ ‫عملاً‬ ‫ريكه‬ ‫طو‬ ‫به‬ ‫شود‬ ‫مي‬ ‫تر‬ ‫سخت‬ ‫و‬ ‫تر‬ ‫سخت‬ ‫قراردادها‬ ‫‪،‬‬ ‫شغل‬ ‫بيشتر‬ ‫چه‬ ‫هر‬ ‫توسعه‬ ‫با‬
‫خودرا‬ ‫‪،‬‬ ‫خود‬ ‫سرمايه‬ ‫با‬ ‫و‬ ‫خود‬ ‫اختيار‬ ‫به‬ ‫فرد‬ ‫قرارداد‬ ‫اين‬ ‫بابستن‬ ‫‪.‬‬ ‫گردد‬ ‫مي‬ ‫داري‬ ‫برده‬ ‫جديد‬ ‫قرارداد‬
‫فرد‬ ‫مثلاً‬ ‫كه‬ ‫شود‬ ‫مي‬ ‫گنجانده‬ ‫قرارداد‬ ‫در‬ ‫ي‬ ‫مواد‬ ‫حتي‬ ‫جائيكه‬ ‫تا‬ ‫‪،‬‬ ‫دهد‬ ‫مي‬ ‫قرار‬ ‫شغل‬ ‫صاحب‬ ‫اختيار‬ ‫در‬
‫‪.‬‬ ‫ندارد‬ ‫را‬ ‫شهر‬ ‫آن‬ ‫در‬ ‫كار‬ ‫حق‬ ‫سال‬ ‫چند‬ ‫تا‬ ‫شغل‬ ‫اين‬ ‫از‬ ‫شدن‬ ‫خارج‬ ‫از‬ ‫بعد‬
‫و‬ ‫برده‬ ‫را‬ ‫شغل‬ ‫گيرنده‬ ‫و‬ ‫دار‬ ‫ه‬ ‫برد‬ ‫را‬ ‫‪Franchise‬‬ ‫صاحب‬ ‫بعد‬ ‫اين‬ ‫از‬ ‫است‬ ‫بهتر‬ ‫فوق‬ ‫تعريف‬ ‫با‬ ‫و‬ ‫بنابراين‬
‫‪.‬‬ ‫بناميم‬ ‫جديد‬ ‫داري‬ ‫برده‬ ‫قرارداد‬ ‫را‬ ‫مابين‬ ‫في‬ ‫‪Franchise‬‬ ‫قرارداد‬
‫مانده‬ ‫عقب‬ ‫و‬ ‫پيشرفته‬ ‫كشورهاي‬ ‫در‬ ‫شده‬ ‫ايجاد‬ ‫عميق‬ ‫و‬ ‫ژرف‬ ‫فاصله‬ ‫و‬ ‫‪،‬‬ ‫دنيا‬ ‫اقتصادي‬ ‫جديد‬ ‫وضعيت‬ ‫با‬
‫به‬ ‫بيشتري‬ ‫مهاجرت‬ ‫به‬ ‫تمايل‬ ‫مانده‬ ‫عقب‬ ‫كشورهاي‬ ‫كوچك‬ ‫و‬ ‫خرد‬ ‫هاي‬ ‫سرمايه‬ ‫صاحبان‬ ‫هرروزه‬
‫مي‬ ‫ود‬ ‫موع‬ ‫هاي‬ ‫سرزمين‬ ‫به‬ ‫مهاجرت‬ ‫به‬ ‫راحلي‬ ‫م‬ ‫طي‬ ‫با‬ ‫راه‬ ‫اين‬ ‫در‬ ‫و‬ ‫‪.‬‬ ‫دهند‬ ‫مي‬ ‫نشان‬ ‫پيشرفته‬ ‫كشورهاي‬
‫‪.‬‬ ‫روند‬
‫اي‬ ‫آماده‬ ‫هاي‬ ‫شغل‬ ‫جذب‬ ‫‪،‬‬ ‫مشاغل‬ ‫با‬ ‫آشنايي‬ ‫عدم‬ ‫بعضاً‬ ‫و‬ ‫قوانين‬ ‫با‬ ‫آشنايي‬ ‫عدم‬ ‫بعلت‬ ‫كه‬ ‫است‬ ‫طبيعي‬
‫و‬ ‫فروشي‬ ‫ساندويچ‬ ‫‪،‬‬ ‫فروشي‬ ‫قهوه‬ ‫‪:‬‬ ‫شده‬ ‫ديده‬ ‫تدارك‬ ‫آنها‬ ‫براي‬ ‫جديد‬ ‫داران‬ ‫برده‬ ‫توسط‬ ‫كه‬ ‫شوند‬ ‫مي‬
‫را‬ ‫املاك‬ ‫اين‬ ‫دار‬ ‫برده‬ ‫معمولاً‬ ‫و‬ ‫كشد‬ ‫مي‬ ‫سر‬ ‫شهر‬ ‫يك‬ ‫گوشه‬ ‫هر‬ ‫از‬ ‫قارچ‬ ‫مانند‬ ‫كه‬ ‫فودها‬ ‫فست‬ ‫انواع‬
‫برده‬ ‫سپس‬ ‫‪.‬‬ ‫كند‬ ‫مي‬ ‫پرداخت‬ ‫برده‬ ‫را‬ ‫دار‬ ‫برده‬ ‫هاي‬ ‫بالاسري‬ ‫و‬ ‫اجاره‬ ‫هزينه‬ ‫ولي‬ ‫‪،‬‬ ‫د‬ ‫كن‬ ‫مي‬ ‫اجاره‬ ‫خود‬
‫حق‬ ‫عنوان‬ ‫به‬ ‫كلاني‬ ‫مبلغ‬ ‫دريافت‬ ‫با‬ ‫ا‬ ‫ر‬ ‫مغازه‬ ‫قرارداد‬ ‫عقد‬ ‫از‬ ‫بعد‬ ‫و‬ ‫اندازد‬ ‫مي‬ ‫دام‬ ‫به‬ ‫را‬ ‫اي‬
‫و‬ ‫ندارد‬ ‫دار‬ ‫برده‬ ‫از‬ ‫مبلغ‬ ‫اين‬ ‫دريافت‬ ‫باز‬ ‫به‬ ‫نسبت‬ ‫حقي‬ ‫برده‬ ‫‪.‬‬ ‫كند‬ ‫مي‬ ‫واگذار‬ ‫برده‬ ‫به‬ ‫‪Franchise‬‬
‫آنهم‬ ‫‪.‬‬ ‫شود‬ ‫او‬ ‫مغازه‬ ‫اجاره‬ ‫به‬ ‫حاضر‬ ‫ديگري‬ ‫برده‬ ‫كه‬ ‫كند‬ ‫دريافت‬ ‫را‬ ‫پول‬ ‫اين‬ ‫تواند‬ ‫مي‬ ‫صورتي‬ ‫در‬ ‫فقط‬
‫‪.‬‬ ‫دار‬ ‫برده‬ ‫به‬ ‫جديد‬ ‫ده‬ ‫بر‬ ‫از‬ ‫دريافتي‬ ‫مبلغ‬ ‫از‬ ‫بخشي‬ ‫پرداخت‬ ‫و‬ ‫دار‬ ‫برده‬ ‫از‬ ‫اجازه‬ ‫كسب‬ ‫با‬
‫بسيار‬ ‫بازار‬ ‫در‬ ‫كه‬ ‫را‬ ‫اجناس‬ ‫اين‬ ‫خريد‬ ‫حق‬ ‫برده‬ ‫و‬ ‫فروشد‬ ‫مي‬ ‫برده‬ ‫به‬ ‫دار‬ ‫برده‬ ‫نيز‬ ‫را‬ ‫كار‬ ‫مواد‬ ‫و‬ ‫لوازم‬
‫‪.‬‬ ‫ندارد‬ ‫است‬ ‫ارزانتر‬‫‪.‬‬ ‫ندارد‬ ‫وجود‬ ‫ملك‬ ‫از‬ ‫استفاده‬ ‫حق‬ ‫واگذاري‬ ‫مبلغ‬ ‫دريافت‬ ‫باز‬ ‫امكان‬ ‫هيچگاه‬ ‫معمول‬ ‫صورت‬
‫از‬ ‫يكي‬ ‫كانادا‬ ‫فرستاده‪.‬‬ ‫پيشرفته‬ ‫كشورهاي‬ ‫به‬ ‫را‬ ‫زيادي‬ ‫بردگان‬ ‫كه‬ ‫است‬ ‫كشورهايي‬ ‫از‬ ‫يكي‬ ‫ايران‬
‫از‬ ‫را‬ ‫بسياري‬ ‫سرمايه‬ ‫و‬ ‫گي‬ ‫زند‬ ‫‪،‬‬ ‫مخصوص‬ ‫حقوق‬ ‫اين‬ ‫از‬ ‫استفاده‬ ‫با‬ ‫داران‬ ‫برده‬ ‫كه‬ ‫است‬ ‫هايي‬ ‫سرزمين‬
‫‪.‬‬ ‫اند‬ ‫داده‬ ‫باد‬ ‫بر‬ ‫شدگان‬ ‫رانده‬ ‫اين‬
‫حتي‬ ‫و‬ ‫كند‬ ‫نمي‬ ‫دخول‬ ‫جديد‬ ‫داري‬ ‫برده‬ ‫اين‬ ‫قراردادهاي‬ ‫در‬ ‫هيچگاه‬ ‫آزاد‪،‬‬ ‫گذاري‬ ‫سرمايه‬ ‫سرزمين‬
‫‪.‬‬ ‫زند‬ ‫نمي‬ ‫دامن‬ ‫آن‬ ‫به‬
‫به‬ ‫در‬ ‫‪،‬‬ ‫دلال‬ ‫عنوان‬ ‫به‬ ‫‪،‬‬ ‫اند‬ ‫نشسته‬ ‫(‬ ‫‪Real estate‬‬ ‫)‬ ‫املاك‬ ‫معاملات‬ ‫هاي‬ ‫دربنگاه‬ ‫كه‬ ‫ايرانياني‬ ‫از‬ ‫بسياري‬
‫‪.‬‬ ‫كنند‬ ‫مي‬ ‫بازي‬ ‫را‬ ‫اساسي‬ ‫نقش‬ ‫مهاجر‬ ‫ايرانيان‬ ‫كشيدن‬ ‫دام‬
‫‪Franchise‬‬ ‫برق‬ ‫و‬ ‫زرق‬ ‫پر‬ ‫هاي‬ ‫شركت‬ ‫داخل‬ ‫به‬ ‫را‬ ‫او‬ ‫يل‬ ‫الح‬ ‫لطايف‬ ‫با‬ ‫‪،‬‬ ‫يافته‬ ‫را‬ ‫برده‬ ‫اقع‬ ‫و‬ ‫در‬ ‫آنها‬
‫‪.‬‬ ‫دارد‬ ‫مي‬ ‫دريافت‬ ‫را‬ ‫خود‬ ‫دلالي‬ ‫و‬ ‫فروشد‬ ‫مي‬ ‫ها‬ ‫آن‬ ‫به‬ ‫را‬ ‫برده‬ ‫ها‬ ‫آن‬ ‫با‬ ‫مدت‬ ‫تمام‬ ‫همكاري‬ ‫با‬ ‫و‬ ‫كشيده‬
‫مي‬ ‫‪Franchise‬‬ ‫يك‬ ‫به‬ ‫شدن‬ ‫وارد‬ ‫از‬ ‫بعد‬ ‫فقط‬ ‫شما‬ ‫‪،‬‬ ‫است‬ ‫بيهوده‬ ‫وق‬ ‫ف‬ ‫مطالب‬ ‫كه‬ ‫كنيد‬ ‫تصور‬ ‫شما‬ ‫شايد‬
‫در‬ ‫را‬ ‫دلار‬ ‫مليون‬ ‫يك‬ ‫حد‬ ‫تا‬ ‫خود‬ ‫سرمايه‬ ‫كه‬ ‫افرادي‬ ‫هستند‬ ‫‪.‬‬ ‫نيست‬ ‫بيهوده‬ ‫مطالب‬ ‫اين‬ ‫كه‬ ‫ببينيد‬ ‫توانيد‬
‫نيستيد‪.‬‬ ‫نفر‬ ‫اولين‬ ‫شما‬ ‫اند‪.‬‬ ‫اده‬ ‫د‬ ‫‪،‬‬ ‫من‬ ‫مثل‬ ‫‪،‬‬ ‫را‬ ‫خود‬ ‫وآينده‬ ‫وهستي‬ ‫اند‪.‬زندگي‬ ‫باخته‬ ‫برگشت‬ ‫بي‬ ‫راه‬ ‫اين‬
‫باشيد‪.‬‬ ‫نفر‬ ‫آخرين‬ ‫كه‬ ‫كنيم‬ ‫دعا‬ ‫‪،‬بيائيد‬ ‫گذاشتيد‬ ‫پا‬ ‫راه‬ ‫اين‬ ‫در‬ ‫اگر‬ ‫ولي‬

Is the Main Street Blenz Going Down Forever?

What’s going on at Blenz?

If you didn’t read our article back in June, we talked about how the Blenz on Main Street suddenly closed and then silently reopened.  You can review that article here.

Today someone forwarded us this update from a Craigslist posting today.  Assuming the link may quickly disappear, we have archived the posting as a PDF file right here:

Craigslist commercial real estate ad for possible current blenz space

Is this shop open today?
If it’s open, why is it being advertised to the public to rent?

 

Bell Mobility Gets Sued by Franchisees: A Deeper look into the Franchisee-Franchisor relationship

The Globe and Mail, on July 29th, published this article about how the Bell Mobility division of Bell is getting sued by its independent dealers.

In short, the Franchisees are suing their Franchisor for squashing their profits and looking out only for their own interests at the expense of the front line troops – the Franchisees.

This is another example of the potentially very challenging relationship a company must face if it chooses the franchise business model.  The motives, agendas, and heart of the Franchisor *must* be like a parent shepherding their flock of less experienced sheep towards a mutually profitable enterprise.  Once it is known (or suspected) that the Franchisor’s main goal is to take as much as possible from their flock and give back little, the relationship will be short-lived and it will be just the blink of an eye before court documents are filed.  Should one be surprised?  Divorce rates are well over 50% and there is much more than money to be lost in a divorce.

It must be noted that not all franchises are being sued.  In fact, we have had Franchisees of a few select coffee franchises claim boldly that they are a) making money and b) satisfied with their Franchisor.  So, it is absolutely possible to have a synergistic and win-win relationship with the Franchisor. However, when trust is breached as in the case of Bell, and if swift and serious action is not taken to repair the breach then all roads lead to the courthouse.

This is serious business, rest assured.

Sometimes Franchisors lose touch with their roots.  They don’t spend enough time in the field getting to know the customers and Franchisees personally.  They don’t know that everything is falling to pieces when a simple, transparent and humble chat would have revealed all. Perhaps the Franchisor would have to consider some compensation for past errors.  Perhaps all it would take would be a grave apology letter or speech from the Directors.  Unfortunately, the impression that many Franchisees get from their ‘shepherd’, as they suffer significant financial hardship, is that they are nothing more than mechanical cogwheels in their money-making machine, held in place by nasty and sometimes abusive contracts.

The Canadian – specifically the British Columbia – franchise world will, in the near future, see the collapse end of bad Franchise ’empires’ as associations like the VCSFA are able to help prepare potential buyers for their investment. We hope that Franchisors who are serious about maintaining a positive brand and all the goodwill their created in the eyes of their customers, will hear the voices of their front-line soldiers and take strong action.

 

 

 

What’s Going on at Blenz Coffee? First Ever Blenz at Robson and Bute Location Mysteriously Closes Doors

Last night Blenz Coffee at the corner of Robson and Bute closed its doors at the usual time. This morning, however, when customers started arriving for their morning coffee they were surprised to find it still closed.

When a few curious people contacted us this morning and asked if we knew what was taking place, or if Blenz the chain was closing down, we contacted the Franchisee, Ali Kormi, who was unwilling to comment further about the situation.  He did confirm that he would not be opening the store today.

What we have learned is that during the summer of 2012, this particular location was closed for nearly two months while it underwent a renovation.  Before and during the renovation staff and customers alike were told that it would take about two weeks to complete – similar to the recent renovation at the Bentall 5 renovation which took well under two weeks and much longer than the Seattle’s Best location takeovers which Blenz was known for completing in a single weekend.  For any retail operation, especially in the coffee industry, each day closed results in notable damages from lost revenue and the loss of the regular customer base as they are forced to change their buying habits during the closure.

This mysterious closure follows just weeks after the closures of 815 Hastings on March 3, and 3297 Cambie on March 29th.

Perhaps most noteworthy about this closure is the fact that Blenz on Robson and Bute was the first ever Blenz location.

You can read more about Blenz the Canadian Coffee Company LTD at this Wikipedia page. *Note: Number of locations appear not to have been updated to reflect recent changes throughout the chain.

Be sure to check back here for updates as they develop.

Do Customers Like Coffee Shop Franchises?

A small article in the Huffington Post BC slipped by many readers. It is most significant to us at the VCSFA not because of what is on the list, because instead what is not on the list.

Before reading the article, it is important to preface that the author Jesse Ferraras used the term ‘franchise’ towards Artigianos where was not a Franchisee/Franchisor business model but instead a corporate structure.  Be it known that Caffe Artigiano does not sell individual franchises as is therefore not on the VCSFA list.

Why this article struck us as notable was that we could not find one – no, not a single solitary name – coffee shop franchise. Don’t believe us, do your own comparison.

The VCSFA Comprehensive List of Vancouver Coffee Shop Franchises

The Huffington Post article of ‘The Best Coffee in Vancouver’ list

Not a single coffee shop franchise wowed the people enough to make it into this list which begs the two obvious questions:

What makes a coffee shop desirable?

Why aren’t coffee shop franchises desirable?

In defense of all those who were not included in this list, we at the VCSFA do not consider Yelp to be a reliable form of research data.  We have had many discussions with cafe and restaurant owners who have had very positive reviews end up ‘filtered’ at the bottom of their page, not contributing towards positively to their star count.  Further, we know of some horrific cafes that have been reviewed accordingly and those awful 1-star ratings still sit there filtered today, not lowering their star count to where it should be.  Finally, we believe that every food and beverage business needs a ‘jubilee’ every 1 or 2 years where all their entire ratings and history are magically erased and reset to zero and the business gets a chance to right the wrongs of the past, starting again with a clean slate.  Can you name one food/beverage business where the same bad (or good) staff are still working there two years later?  Or, is it not possible that a new owner has taken over and has improved upon or killed the previous owner’s work? For this reason, we acknowledge that the data source is not a reliable enough to be considered conclusive.

With that preface, Yelp is good for one thing: collecting the ‘extremes’.  So, if a review does make it through the Yelp filters, it is likely that the person who wrote it is pretty fired up in the positive or the negative.  It is even more unlikely that someone will blog a positive review so all the kudos to the shops that got some.

With all that preamble behind us, here is the important stuff that we have pulled out of this work:

What seems to make people like these shops:

  • quality food
  • unique atmosphere
  • niche java (ie. serving South American style, Clover machines, freshly roasted, organic/fair trade, etc)
  • niche skill (ie. latte art)

One reason why a Franchise coffee shop may not have made it on the list is because people, by the nature of the way they view a multi-location chain, don’t consider it special.  They may get a good drink but because it’s part of a big chain they might not consider that experience unique enough to blog.

The VCSFA is well aware that the food programs at most if not all coffee shop franchises is abysmal.  In many cases the owner of the store is forced to order over-priced product from a vendor that has no idea what the customers in his neighbourhood are demanding and/or has no authority or ability to provide a solution.  In one case, a group of franchisees from a major Vancouver chain reported to us that their sandwiches were made in Vancouver and then shipped for sale to their store in the Okanagan!  We could understand this model for a low-priced, high-volume chain, but we were shocked that this was occurring in a chain claiming to be trying to carve out a piece of the high-quality market.  Needless to say that as soon as the customers found out, sales slumped.

Coffee shop franchises should be on alert and take much heed to this casual list.  Franchisees of the chains that were not included on this list (which is every last one of them) should start immediately asking their Franchisors what went wrong.

 

 

BLENZ COFFEE 815 Hastings Suddenly Closes Door March 1st

BLENZ COFFEE 815 Hastings Suddenly Closes Door March 1st

Without notice, Blenz at 815 West Hastings Street in Vancouver, BC, closed the doors in what appears to be yet another permanent closure within this Vancouver brand.

The sign on the door read ‘closed until further notice’ but if you look through the doors you can see that the inventory has been removed.

The Blenz.com website under ‘locations’ still shows the erroneous address of 807 West Hastings street and indicates the store is still in the list of active Blenz locations but it is physically completely shut down and locked.

This follows the closure of the Blenz Coquitlam Centre location, several locations in Japan, and other rumoured BC closures are under investigation by the VCSFA.

 

 

 


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New Service – Free Contract Review

Thinking about buying a coffee shop franchise but you don’t want to spend money on a fully qualified lawyer?

Already bought one and don’t understand what you signed?

Why not schedule a time to meet with a VCSFA Coffee Shop Franchise Volunteer Consultant, get some free advice from an experienced Franchisee who understands the contract well?  After reviewing your contract they will be able to point out areas of concern so that you can make the best choice for you and your family.

Although our volunteers are not lawyers, they have themselves worked with a variety of lawyers on a variety of topics related to these contracts and are well aware of how these oftentimes confusing contract clauses can significantly affect your future.

Not in Vancouver but still need our help?  Don’t let distance prevent you from reaching out to us.  We’ll find a creative way to help you because we are passionate about what we do.

Although this is a free service run by volunteers, we do hope that you will find a huge value and, after receiving your advice consider making a contribution to the VCSFA so that we can continue our work bettering the lives of coffee shop franchisees.

 

 

 

Coffee Bean Prices – Cheap beans up, nice beans down

Here is an interesting article about the effect of the economy on coffee bean prices.

What effect will this have on local specialty coffee shops, of which most of the coffee shop franchises are?  This article would suggest that franchisees of specialty coffee shops should see a reduction of their bean prices – that is, unless, their franchisor has them selling cheap beans!

 

 

Profitability of a Coffee Shop Franchise

There has been a spike recently in the number of people asking the VCSFA whether they can make money with a Blenz or a Waves coffee shop franchise, or any other coffee shop franchise.  The former two brand names have the largest presence in the ‘speciality coffee’ market in Vancouver – hence more people asking about them.   This article will apply to any coffee shop franchise, not just the big ones.  This topic has always been the elephant in the room but it’s time to drag that beast into the spotlight and talk about it.

The short answer to the question is: ask the franchisee’s accountant

First, let’s clear up the business basics.  This article about the profitability of a Quiznos franchise is very similar to a coffee shop franchise in regards to the breakdown of numbers  – so much so that we don’t have much to add or alter. Take a minute to read the shocking truth

So we’ve established that it’s tough on a good day to make money as a coffee shop franchisee.  Just to be balanced we will present this interesting article about how a franchisor is not necessarily making money, even though they may have over 50 locations.  There is one Vancouver coffee shop franchise with well over 50 locations and it’s next competitor approaching 30.  Many of their franchisees just assume head office is making money while they are suffering, but that may not be the case.  The big problem is that no matter what, the franchisor in their precarious position cannot be expected to open their books to anyone. If the books show heavy profit, the suffering franchisees will revolt.  If they open the books and show bad numbers, the confidence level in the brand will be eroded inside but especially outside the chain.  Perfect secrecy seems to be the name of the game for all non-public coffee shop companies – especially when discussing the allocation of the marketing/advertising pool.  Although we will soon dedicate an entire article to properly assessing the health of a franchise, let’s just say that some warning signs of non-health to look out for are as follows:

  • the head office moves from a high rent but convenient location to a far more inconvenient low rent location,
  • the sudden disappearance of head office employees (especially the talented ones),
  • abnormally high use of part time and intern (free) staff with an increasing trend,
  • the reduction of money towards the support of the franchisees,
  • marketing that involves almost exclusively contra (ie. you find the newspaper rack in all the locations and an advertisement in the same newspaper) or sponsorship relationships with media – in essence very little actual money spent promoting the brand.

One coffee shop franchisor told its franchisees ‘bus ads don’t work for our brand’ yet just a few months later they proudly announced to the same franchisees how they had received bus stop ads for free in a co-branding initiative with Visa.

Profitability should be properly examined – independently of what the franchisor claims to the potential buyer – before purchasing a franchise of any kind.  Poor Quiznos (they have some tasty stuff) has been the poster child of some bad deals, so for convenience we’ll continue using them.  This article clearly shows that profitability is not the primary concern of the franchisor. Sometimes they just want to open locations (or keep unprofitable ones going) just for the sake of showcasing their many logos around town and collecting some beefy fees when they start and turn over locations.  We are gathering conclusive evidence that Vancouver is not exempt from such practices in the coffee shop franchise world, unfortunately.

It’s important for the potential buyer to understand that the Franchisor is a salesperson – and they are very good at their job. They sell cookie cutter ‘turn-key’ businesses.  In sales, it is rare that a big focus will be put on the incredible risk involved with such a purchase – that is unless the Franchisor doesn’t want that person to buy that store for some reason.  Many franchises are far more than $100,000 to start and many of those buyers will lose most or all of that investment.  We have never heard of those stories told to any potential buyers.  This article involving our poster child shows that Franchisors can be downright abusive with their hand-crafted franchisee agreements.  Does this affect your profitability?  Yes.  If you lose your initial investment because of a crafty legal document, what did that just do to any profits you may have eked out?

Profitability is directly related to something called ‘capture rates’.  If you don’t know what that is, take a moment to read this article.  The last paragraph doesn’t use the term ‘capture rate’ but very well explains the concept.  One of our members asked their Franchisor repeatedly for the capture rates of their chain and his prospective location and these numbers were never provided him.  Unfortunately, he learned the hard way why. Thankfully, he has contributed that loss towards learning why it happened and helping educate others so they don’t make the same mistake he did.

Another practice by some Franchisors is ‘churning’.  We wrote a dedicated article a while back.  This topic should be of high importance to the potential buyer when considering profitability.  If you simply follow the history of ownership of certain locations and you find this happening, you will have to consider what kind of people you will be partnering with and whether you are alright with that.  Here is a story about churning and it happens all around the world, unfortunately.

We hope this article helped address many of the questions related to profitability in a general way.  We hope to publish more articles in the near future that focus on very targeted areas of profitability of a coffee shop business model.

As always, we look forward to your comments by emailing info@vcsfa.ca