The Franchisor’s Wheels Keep on Churning

This article submitted by a founding VCSFA member.

It’s really quite disturbing and addresses a term called ‘churning’.  The idea behind ‘churning’ is that a failing franchise can be taken back by the franchisor, or a firesale can occur with hopes that the new owner can make it break even.

This just perpetuates the system that has become akin to urban business slavery.   The customer sees the chain as successful because the stores never seem to close, yet the reality is is that the pain is merely passed on to the next franchisee all the while the franchisor gets some money during the purchase and sale of the existing store and always gets their royalty.

This article is worth reading and considering if you are thinking about buying a coffee shop franchise.

 

2012/08/28Permalink 2 Comments

2 thoughts on “The Franchisor’s Wheels Keep on Churning

  1. Pingback: Profitability of a Coffee Shop Franchise

  2. Pingback: Franchise agreement termination - Franchise Fraud - Franchise scams

Leave a Reply