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west-byGod-Pa. | Being a franchisee is a tough gig for most operators & most brands. The brand-holders really put the screws to franchisees. An hour ago, had a friend tell me that a shoe store she worked at in 1996, went under: mall owner tried to raise the rent on shoe store: store owner could not sell enough to cover the cost. Now, in this case, it was a real estate company, but either way, it is difficult for a franchisee/store owner. Had a McDonald’s owner spend an hour telling me how the business is run & how unhappy most of the franchisees were because of how McDonald’s operates. Franchisees have a substantial investment in each location. They need to be able to have something left over after costs, rents, & taxes.
Tomorrow morning a new Long John Silver’s is opening up nearby. The system was bought by a venture capitalist, so the “ middleman” of a franchisee has been eliminated. All are company stores. That is about the only way the restaurant business will be able to survive. The idea of a Starbucks on every corner is going away: they are shuttering thousands of stores system wide. Gotta make the economics work.
Just remembered: Baskin-Robbins Ice Cream. There was a new one opened nearby coupla’ years ago, but closed about a year later. I remember talking to one of the franchisees a few years before. At that time his was the only one left in the whole region. He told me the franchise holders had gone thru several permutations of ownership: each one would increase franchise costs: made it unworkable. He expected to close.
Edited by teach84 11/6/2025 19:50
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Dairy Queen
