What Happens to Small Businesses When They Run Amuck As Franchisors?

I shook my head years ago when a major donut franchisor's stock went sky high and said to my young son, "watch this for fun and you might learn something."  With retail space the size of a sit down restaurant, delivery trucks, a huge upfront investment, and plenty of staff, I knew it was going to take a lot more than good luck turning a profit at a few bucks a box for yeast, flour and sugar.

Now, the original concept was successful based on great product, logical size storefronts, and a reasonable investment. However, as has been the case in many 'corporate/executive' take over franchises, the core business can be changed, raped, or altered to such an extent that it no longer resembles that which initially made sense, and made profits.

Most successful (start-up) entrepreneurial ventures (the ones that stood as models for an eventual franchise) were hard, lean and profitable, but they change when Wall Street comes aboard. Why? For the most part, new ownership/management neither understands nor wants to understand the very essence or hard work associated with the model. "Franchisees can be the worker bees now." As a franchise consultant of many years, I assure you that I am always on the lookout for franchise management that is upside down.

This is the real shame of franchise madness. Be sure to do your due diligence before buying ANY franchise.