Winner69.Thanks for the link.
Frightening article.So easy to see why people brought the franchises,Aussie's love their pies. Most would have borrowed against their homes to do so.
They will most probably not only loose their income,but their home too.
Winner69.Thanks for the link.
Frightening article.So easy to see why people brought the franchises,Aussie's love their pies. Most would have borrowed against their homes to do so.
They will most probably not only loose their income,but their home too.
Always a tough life being a franchisee - they generally borrow to set up and then take all the risks and pay the wages and rents and give the franchisor their cut and then hope enough to feed their own kids. All the time the franchisor generally doesn't lose.
Why I posted that article here is that i know of one Mad Butcher in that predicament and no doubt a few others. Veritas cannot afford to get greedy else they don't have a businesss.
Always a tough life being a franchisee - they generally borrow to set up and then take all the risks and pay the wages and rents and give the franchisor their cut and then hope enough to feed their own kids. All the time the franchisor generally doesn't lose.
Why I posted that article here is that i know of one Mad Butcher in that predicament and no doubt a few others. Veritas cannot afford to get greedy else they don't have a businesss.
Not only Veritas who should not get greedy,a number of landlords have unrealistic views on rent.
As a side bar I note often people like WHS and even SCY develop their own stores,see what sort of rents the store can pay,then sell the development off showing the returns a property investor requires.
The other problem is when someone like Pie Face comes next door to you, and pays huge rent.If you are unlucky and get caught with a rent revue before they go broke,your rent goes up to their level.After they have gone broke you are left trying to pay the inflated rent.
a number of landlords have unrealistic views on rent.
Correct percy..
Have personal experience with that scene.. 9 years a 3x3x3 lease at a fair price.. With fair increases..
Owner sold.
Enter a genuine Oyeh Vey Shylock.. ( Lawyer ). Asking a 40% increase..
I moved..
There followed a succession of tenants.. With the building being on the market at 50% above original sum paid..
Always a tough life being a franchisee - they generally borrow to set up and then take all the risks and pay the wages and rents and give the franchisor their cut and then hope enough to feed their own kids. All the time the franchisor generally doesn't lose.
Why I posted that article here is that i know of one Mad Butcher in that predicament and no doubt a few others. Veritas cannot afford to get greedy else they don't have a businesss.
A grand total of zero Mad Butcher stores closed during 2014
A grand total of zero Mad Butcher stores closed during 2014
I didn't say broke .... just not making a decent living after paying the bills and the interest on the loans. He reckons the franchisor has made out of him than he has made himself ..... and his hourly rate is less than $10 an hour
Maybe there will be some casualties in 2015
But never mind as long as those butchers keep selling meat you as a shareholder can't lose eh .... that's why VIL best investment on the NZX
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Originally Posted by winner69
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