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If your contemplating buying a franchise or resold retail store..watch out !!! I’m going to tell you the facts of life concerning these two type of entities..So listen up people… If you want to be a first time retailer and don’t have a good friend or relative who can show you the ropes &, guide you setting up a new buisness and believe me there’s a lot of things that have to be considered.. From buying shelving to product 0 and also it may require some training such as cooking, baking, dry cleaning, you name, it & guess What? If you have absolutely no knowledge from what I just mentioned then you either have to go and buy into a Franchise or Resale buisness .You’ll be at their mercy and believe me whichever one that you choose your going to be raked over the hot coals. So my good friends hold on tight because your going to be in for a rude awakening.
For the purpose of this article I’m going to omit the names the of the franchise to protect my $10,000,000 in my bank (lol I only wish)
My parents personally were good friends with a couple who lost their life savings on such a venture. They bought in to a franchise which was an eatery which will remain nameless all that I’ll say that it was on a busy truck route. The husband thought his hired help were stealing from register as he was busy land office style busy all day..So he worked the cash register himself..He then had a wake up call. When you buy a franchise lets say for example for 50,000..you put down lets say for argument’s sake $20,000 & pay out the remaining $30,000…On top of that there is a franchise fee plus you must buy all your products from the Franchising Corporation including such incidentals which you can purchase elsewhere for a fraction if the price you such as paper napkins, plastic knives, spoons and forks and boy do you get a forking ..and yes they require a minimum order. Well he then decided to sell hot dogs and soup..It wasnt to long before the franchise Corp. got wind of that and told him that only their products can be sold in his store..he then snuck in products and again they warned him ..the 3rd time they threw him out & what ever amount of money he put into the business at that point was down the drain..lost.. Yes he did violate the franchise agreement but he sort if had no choice it paramount to a scam. It was the same with most franchises the hours you put in your giving them your life savings to and if you figured out ..your actually working for minimum wage.
Today they work it a bit different.they make you purchase 5 or 6 places and lets face it the only one who can afford that is an investment Broker for a Doctors group as a tax right off.
Second is the retail business.. At one time a young man purchase a candy store for instance and sold it when he was an old man ready to retire..I remember going into a dog food store for sale..I waited in the parking lot for an hour before I walked in to his store..I was inside talking to him for a good 45 minutes and not a living soul came in…I also eyed the inventory on the shelves and back room and estimated it not to have been more than $500 total.. He had told me he rakes in $6,000 a week in sales alone .. I asked then why are you selling the place? he replied back to me in a weak voice “I’m very sick I’m not well and may die soon ” I then said ”Can I go to your doctor and review your chart to see if you are as sick as you claim to be ?’ No way he replied back but this time in a load strong hefty voice..Bottom line he was full of crap..and 99 % all retail sale of business are phony too. These above mentioned stories are only an example for whats in store…..LET THE BUYER BEWARE !
MOSES LERMAN BLOG ADMINISTRATOR & EDITOR