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AMERICA’S WORST FRANCHISES According to Forbes

May 30, 2014

Forbes Worst FranchisesAMERICA’S WORST FRANCHISES… According to Forbes

What are America’s worst franchise opportunities?

Using data compiled by franchise research company FRANdata, Forbes magazine has compiled its list of the 30 worst franchises in America.

Forbes ranked what it believes to be the ten worst franchises in each of three investment categories:

  • – franchises requiring an investment between $0 – $250,000,
  • – franchises requiring an investment between $250,001 – $500,000,
  • – and franchises requiring an investment of $500,001 or greater.

What do you think?  Did Forbes miss your pick for worst franchise?  Leave your nomination with a comment below.

To learn more about why Forbes included specific franchises, and to share your opinion, click on the links to franchise company pages in the table below.

 FRANCHISORS:  If you feel your franchise has been unfairly named to Forbes “Worst Franchises” list, post your rebuttal below or email it to UnhappyFranchisee[at]gmail.com for immediate publication.

Also read:  AMERICA’S BEST FRANCHISES According to Forbes

See all our FRANCHISE DISCUSSIONS by Company

FORBES WORST FRANCHISES 2014

INVESTMENT RANGE                     Source:  Forbes
RANK (10 Being Worst)

0 – $150,000

$150,001 – $500,000

$500,001 and over

10 SuperCoups Dippin’ Dots Country Kitchen International
9 Realty World Steak Escape It’s a Grind Coffee House
8 Parable Commission Express Tastee Freez
7 UBuildIt COOKIES BY DESIGN Atlanta Bread Company
6 Aero Colours Dream Dinners Bennigan’s
5 All Tune and Lube Avalar Shoney’s
4 Curves DreamMaker Bath & Kitchen Bonanza Steakhouse
3 House Doctors Golf Etc. Desert Sun Tanning Salons
2 ERA Real Estate Samurai Sam’s Teriyaki Grill La Salsa
1 FastFrame Great Steak & Potato Company Ground Round Grill & Bar

Franchisor Rebuttals to Date:

DREAMMAKER BATH & KITCHEN President Responds to Forbes Worst Franchise List

UBUILDIT Responds to Forbes Worst Franchise List

 

Methodology:  According to Forbes,

FRANdata did screen for two key criteria over those years that give some indication of market demand for the brand and overall support for its franchisees: growth rate and the so-called continuity rate. Continuity gives some indication of the ongoing success of the stores… Other factors that affected the ranking: a franchisor’s transparency in reporting historical performance, which lets prospective franchisees evaluate the opportunity; support for franchisees (financing and the like); and recurring revenue self-sufficiency (does the franchisor depend on revenues from selling additional franchises to sustain ongoing operations?)

Read Forbes’ America’s Best And Worst Franchises

For a more detailed look at Forbes methodology, click here.

WHAT DO YOU THINK?  DID FORBES MISS YOUR PICK FOR WORST FRANCHISE?  SHARE A COMMENT BELOW.

TO COMMENT ON FORBES WORST FRANCHISE PICKS, CLICK LINKS IN THE TABLE ABOVE.

Contact UnhappyFranchisee.com

TAGS: Worst franchises, Worst franchises in America, Forbes worst franchises, bad franchises, franchise failures, buying a franchise, franchising, Unhappy Franchisee, Forbes magazine

Comments

6 Responses to “AMERICA’S WORST FRANCHISES According to Forbes”

  1. texastee says:

    Liberty Tax should definitely be included. Talk about lack of support and large fees everywhere…

  2. […] want a detailed listing of all of the worst franchises, check out a website called “Unhappy Franchisees,” where they’ve been invited to post a response. All 30 names are named […]

  3. James Neighbors says:

    Dickey’s Barbecue Pit should be up there in the top ten as well. They promise so much and deliver so little. They misguide unknowing people with no experience and lead them into bankruptcy. They claim to help with lease negotiation, financing, equipment, construction, management training and what they actually offer is bad advice from inexperienced and uncaring hourly workers. They have such a high turnover of employees that none have the foundation to do the work correctly. They take money from mom and pop and lead them around until they are out of money and leave them high and dry. Then you are in a situation that is uncontrollable and they blame you for being a bad manager even though they promise management training that does not exist. Call me anytime and I will tell you my story.

  4. maliha rahmani says:

    I am a former church’s chicken franchisee in. Owned 3 units in Philly and NJ. From 2007 to 2010, we had great sales, great corporate and everything was perfect. Once the company was sold to a fortune 500 company based on California, that is when problems started. Company started stealing our ad funds and stopped advertising. They brought a new distributor setting very high product prices and made all franchisees sign up by lying and promising low prices. Total 4 franchisees here, company stole $250k to $500k per franchisee. When we complained, they cancelled our franchise agreement and shut down all of my units and 5 other units from other franchisees. Church’s Chicken is a thief, thug, criminal. They stole however they can. The prices of products were almost double than outside prices because they were making commission. They destroyed every franchisee and our investments here
    and played with our future. They are the worst and most unprofessional company to invest.

  5. I am a former church’s chicken franchisee in. Owned 3 units in Philly and NJ. From 2007 to 2010, we had great sales, great corporate and everything was perfect. Once the company was sold to a fortune 500 company based on California, that is when problems started. Company started stealing our ad funds and stopped advertising. They brought a new distributor setting very high product prices and made all franchisees sign up by lying and promising low prices. Total 4 franchisees here, company stole $250k to $500k per franchisee. They stole every dollar of ours even deducting higher percentage than they should from our banks. When we complained, they cancelled our franchise agreement and shut down all of my units and 5 other units from other franchisees. Church’s Chicken is a thief, thug, criminal. They stole however they can. The prices of products were almost double than outside prices because they were making commission. They destroyed every franchisee and our investments here
    and played with our future. They are the worst and most unprofessional company to invest.

  6. DiscoveryPointFraud says:

    Discovery Point, Legacy Academy, Kids R Kids, are also operating near criminal operations. They do not mark SBA loans as franchised loans and lie rampantly in the franchise disclosures. This list developed by SBA and conclusions drawn based on that statistics are meaningless. These franchisers teamed up with the banks to intentionally not mark the loans as franchised loans. So that their records do not show up in these analyses. Who knows, if all the data were included, all or some of these childcare franchises would have made the top 10 failure list. Note that these franchises sell multi-million dollar SBA guaranteed inferior quality buildings at inflated prices in different business names other than the franchise name.

    Discovery Point uses Discovery Development, Legacy Academy uses Commercial Contractors Enterprises, Kids R Kids uses Patrick D. Vinson Reality among many other business identities to hide the franchise related transactions.

    In essence, SBA has done a very poor job on monitoring the records and these rogue businesses and banks are feeding on them.

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