Comments on: When a Boomer Franchise Fails, Who’s to Blame? http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/ business advice for boomers Tue, 26 Jan 2010 00:05:44 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Jean http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/comment-page-1/#comment-1238 Jean Wed, 15 Oct 2008 02:44:32 +0000 http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/#comment-1238 I wonder what the success rate is for franchises in general and pizza franchises specifically? Is it ever worth the time and money to get into a franchise? In other words, what are the odds? I wonder what the success rate is for franchises in general and pizza franchises specifically? Is it ever worth the time and money to get into a franchise? In other words, what are the odds?

]]> By: PizzaForADream http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/comment-page-1/#comment-1086 PizzaForADream Tue, 14 Oct 2008 17:39:17 +0000 http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/#comment-1086 Another potential issue for these folks is their willingness to "hustle." Of course I don't know them, but you've got to be willing to do whatever it takes (W.I.T.). Were they part of all the networking organizations (Chamber of Commerce, etc), did they develop catering relationships with local businesses, were they involved in other local area events sampling their product, etc.? I think many business owners just expect business to come their way when opening the doors. It takes tons and tons of hard work (and money) to market a business like this. Another potential issue for these folks is their willingness to “hustle.” Of course I don’t know them, but you’ve got to be willing to do whatever it takes (W.I.T.). Were they part of all the networking organizations (Chamber of Commerce, etc), did they develop catering relationships with local businesses, were they involved in other local area events sampling their product, etc.? I think many business owners just expect business to come their way when opening the doors. It takes tons and tons of hard work (and money) to market a business like this.

]]> By: New SBA Site for Baby Boomers - Check it Out! http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/comment-page-1/#comment-1094 New SBA Site for Baby Boomers - Check it Out! Tue, 14 Oct 2008 00:58:30 +0000 http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/#comment-1094 [...] a franchise might help you avoid the problems I’ve seen with franchises (see the example of PizzaWorld from last [...] [...] a franchise might help you avoid the problems I’ve seen with franchises (see the example of PizzaWorld from last [...]

]]> By: Mark http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/comment-page-1/#comment-1128 Mark Thu, 09 Oct 2008 06:42:38 +0000 http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/#comment-1128 Reading this article saddens me, because this story is repeated daily throughout the country. It happened to my wife and me, too. We thought we did the research, we bought into an extremely popular franchise, and we followed the franchisor's advice. And 4 years later, in our mid-50s, our investment was wiped out. I don't entirely blame the franchisor, but the whole industry has created this unsubstantiated myth that buying a franchise is safer than "starting your own business." It is not. My heart goes out to the lady in the blue sweater. Reading this article saddens me, because this story is repeated daily throughout the country. It happened to my wife and me, too. We thought we did the research, we bought into an extremely popular franchise, and we followed the franchisor’s advice. And 4 years later, in our mid-50s, our investment was wiped out. I don’t entirely blame the franchisor, but the whole industry has created this unsubstantiated myth that buying a franchise is safer than “starting your own business.” It is not.

My heart goes out to the lady in the blue sweater.

]]> By: PizzaForADream http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/comment-page-1/#comment-1124 PizzaForADream Wed, 08 Oct 2008 23:24:25 +0000 http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/#comment-1124 I've been in the advertising world for years and just entered the pizza world. Don't know what other pizza companies are in your area, but the big boys spend tons and tons on marketing. It's tough to compete with constant commercials, new and innovative products (pasta and subs), direct mail in your mailbox every other week, etc. I’ve been in the advertising world for years and just entered the pizza world. Don’t know what other pizza companies are in your area, but the big boys spend tons and tons on marketing. It’s tough to compete with constant commercials, new and innovative products (pasta and subs), direct mail in your mailbox every other week, etc.

]]> By: Sean http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/comment-page-1/#comment-1129 Sean Wed, 08 Oct 2008 18:27:53 +0000 http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/#comment-1129 Actually, here's another possible reason: low fees The PizzaWorld website states: "- Only 2.75% Net Royalty Fees - 0% Marketing Fund - 0% Cooperative Contribution "We Allow You To Buy directly from the approved food prover we do not mark up your food like most companies this keeps your food cost down and even puts more money in your pocket!" The franchisor may have the best of intentions, but he can't provide much assistance if he has no revenue. If he has 10 franchises doing $300,000 each, the revenue for his entire franchise company is $82,500. Plus, there's no contribution for marketing, so no $$$ to get good photography, put together promotions, etc. If you don't charge, you can't provide. If you can't provide, what's the benefit of the franchise? Actually, here’s another possible reason: low fees
The PizzaWorld website states:
“- Only 2.75% Net Royalty Fees
- 0% Marketing Fund
- 0% Cooperative Contribution
“We Allow
You To Buy directly from the approved food prover we do not mark up your food like most companies this keeps your food cost down and even puts more money in your pocket!”
The franchisor may have the best of intentions, but he can’t provide much assistance if he has no revenue. If he has 10 franchises doing $300,000 each, the revenue for his entire franchise company is $82,500. Plus, there’s no contribution for marketing, so no $$$ to get good photography, put together promotions, etc.
If you don’t charge, you can’t provide.
If you can’t provide, what’s the benefit of the franchise?

]]> By: Franchise Pick http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/comment-page-1/#comment-1130 Franchise Pick Wed, 08 Oct 2008 17:28:24 +0000 http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/#comment-1130 Great post. I cross-blogged it at: http://www.franchisepick.com/pizzaworld-why-did-the-marion-ia-pizzaworld-franchise-close/ It's sad to see a closure like this - especially when they were good people offering a good product. You raise some great points about why they may have failed. Successful pizza operators are fanatics on food costs and monitor the use of higher priced items - like cheese. You also must have a clear pricing and brand positioning strategy. The quality, portions and price seemed to make this a special occasion place to go for you... they may have gotten higher per-ticket sales and rave reviews, but suffered when it came to frequency. That's where specials and some lower priced items can be effective, such as the Olive Garden breadstick & soup combo that appeals to those looking for a quick, cheap(er) lunch choice. Great post. I cross-blogged it at:
http://www.franchisepick.com/pizzaworld-why-did-the-marion-ia-pizzaworld-franchise-close/

It’s sad to see a closure like this – especially when they were good people offering a good product. You raise some great points about why they may have failed. Successful pizza operators are fanatics on food costs and monitor the use of higher priced items – like cheese.

You also must have a clear pricing and brand positioning strategy. The quality, portions and price seemed to make this a special occasion place to go for you… they may have gotten higher per-ticket sales and rave reviews, but suffered when it came to frequency.

That’s where specials and some lower priced items can be effective, such as the Olive Garden breadstick & soup combo that appeals to those looking for a quick, cheap(er) lunch choice.

]]> By: PIZZAWORLD: Why Did the Marion, IA PizzaWorld Franchise Close? http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/comment-page-1/#comment-1138 PIZZAWORLD: Why Did the Marion, IA PizzaWorld Franchise Close? Wed, 08 Oct 2008 16:38:10 +0000 http://www.smallbusinessboomers.com/when-a-boomer-franchise-fails-whose-to-blame/#comment-1138 [...] her post (When a Boomer Franchise Fails, Who’s to Blame?), my fellow b5 Business Channel blogger Jean shares her enthusiasm for the Marion, IA PizzaWorld [...] [...] her post (When a Boomer Franchise Fails, Who’s to Blame?), my fellow b5 Business Channel blogger Jean shares her enthusiasm for the Marion, IA PizzaWorld [...]

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