This article about a coffee chain called Tully’s (they aren’t small) should make any coffee shop franchisee or potential buyer stand up and take notice.
Most people make their decision to purchase a franchise assuming that the brand is here to stay. As one of our members once confessed, “I saw the financials and they weren’t good, but I looked around the city and thought to myself that surely 60 other franchisees can’t be wrong!”
But they were wrong. All of them.
It turns out that the chain that they had bought into had more internal leadership problems than China has tea. It turns out that the financials he read were not only as bad as they presented themselves but even worse. He also discovered through membership in the VCSFA that he was not alone.
What is painful to read in the article above is this:
There are also 83 franchised or licensed Tully’s locations in the U.S. as well as locations in Asia.
Here is a chain with a mixture of both corporate and franchise stores. Those franchisees who paid a good sum to get involved must accept what is happening, hope things get better, or take dramatic action with a group.
Here were learn to not think that the glories of yesterday are enough to carry a coffee shop franchise into tomorrow.
Check the leadership, check the numbers and always reach out for advice.
As always, do not hesitate to email us with your comments or questions.