This article provides a brief history of some well-known franchisor
bankruptcies of recent years -- including Denny's, Bennigan's, Steak &
Ale, Original Roadhouse Grill, Cork & Olive, The Ground Round, Church's
Chicken, Popeyes, and 7-Eleven -- with a look at the outcomes of these
bankruptcies for both the franchisors and their franchisees.
However, once the ribbons come down and time passes, franchisees begin to
recognize the challenge ahead and that, in many ways, they're on their own:
regardless of the amount of support their franchisor provides, the franchisee
is ultimately responsible for generating sales for his or her new business.
For entrepreneurs seeking to hit the ground running with a new business
venture, there are two main categories of opportunities out there that allow
them to benefit from the experience, assets and reputation of existing
business concepts. These are: (i) the franchise, and (ii) the “business
opportunity”.
Of course, new concepts and geographically-focused concepts may have no or
only a limited number of franchisees. These opportunities should not simply be
avoided wholesale; however, in these cases it will be particularly important
to have candid and open discussions with the franchisor’s owners and
representatives.
The brand of adult shop that the newlywed couple launched after returning from
a year-long tour of duty in Iraq was inspired by what made them uncomfortable
about other adult shops.