Why Franchising Sucks!


Lack of vision, communication and innovation is what breaks brands and their ability to sustain consistency and growth. As I cruised the new wing of Chadstone Shopping Centre this weekend, the representation of franchise brands was overwhelming. If franchising sucked would franchisee’s partner up with us and bring innovation to the Chadstone shopper looking for a bite to eat to refuel amongst all those shopping hours…

Browsing the eateries with many others doing the same, innovation was plentiful as I came across these strong and well-presented brands: Boost, Hungry Jacks, KFC, McDonalds, Nando’s, Soul Origin, Subway and, Sushi Sushi to mention a few. The franchise industry is strong and we as a country continue to have a love affair with franchising, small business and being our own boss.

The latest Franchising Survey conducted by Griffith University reports revenue as $146 billion in Australia, 1120 franchise system employing 470k people! Progressive franchise brand owners empower franchisees to own and operate their businesses with their flare. The new breed of franchise brands embraces the energy of the “franentrepreneur”.



It’s about bringing the franchise brand to the local community, the trust of the known commodity however the splash of spice added to infuse the local community’s individuality, their needs, their tastes and the way they make life happen.

Franchising sucks when inflexibility and rigid rules restrains franchisees from owning and operating their business with the vision to service their local customers.

Franchising sucks when the franchise brand becomes irrelevant and no longer has a direction. Franchise Systems have a responsibility to keep investing in the brand, its systems and the offer which the marketplace is prepared to pay for. Too often the franchise brand becomes stiff, yesterday looking and forgets to keep current in what it looks like, smells, like, feels like and in the end commences a slow death through franchisor dis-alignment and franchisee disengagement. Every stakeholder in a franchise brand has the responsibility to stay innovative and flexible, keeping in mind staying current involves passion, vision and commitment.

Creating a life within a franchise brand is a way of life. It’s about the spirit of the community, the like minded people, the access to those who have paved the way, the respect of one another’s differences, the inspiration to tap into the endurance spirit when life throws a curve ball and finally an interdependence which delivers the wealth goals of both parties as long as respect, trust and hard work is applied to the recipe.

Just perhaps we need to give franchising a break! All we ever seem to talk about is the failures of the franchise business format.

To be frank it’s not the business model that fails it’s the people factor which makes it fail!

People and their lack of franchise leadership and respect both at franchisor and franchisee level leave a bad a trail of disruption to the world of franchising.

Business ownership in all formats is a risk, there is no perfect pathway to business ownership or a perfect risk plan! There is only hard work, passion and endurance- this is what delivers financial and personal success.

Author: Jeremy Szelag
I’m a creative thinker who loves to see business thrive. We live in a digital world where every day there are new tools, features and platforms that change the way businesses operate. I’m happy to be your tour guide in all things digital to help you develop cost-effective, sharp and finely-tuned campaigns that achieve real results.

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