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So most of these places are ran by a person that got trapped into a shitty deal like a timeshare?
I’ve worked for both individual owners and corporate owners, and it really really depends on the franchise. Chick-Fil-A is like owning a money printer as an individual owner. Pizza Hut is nearly impossible for even a large company to run profitably.
My last job was with the largest operator of both Pizza Hut and Wendy’s in the US, they filed for bankruptcy two months after I quit because Pizza Hut was such a loss that even the Wendy’s profits could not cover the losses.
I currently work with a bunch of CFA operators and no one owns more than two stores and they all seem to do quite well for themselves while paying their employees pretty damn good wages.
Worth noting that CFA is notoriously difficult to franchise with. They’re extremely selective on what types of people that they’ll enter into franchise contracts with. And they’re extremely choosy about locations, because they do everything in their power to avoid over-saturating a particular market. They’d rather have one extremely busy location, instead of two locations nearby that both struggle. Basically, unless you’re a rich white Republican christian man with a trophy tradwife, you have near zero chance of getting franchise rights with CFA.
On the bright side, once you get your foot in the door, you’re pretty much set for life. It only costs a relatively small up-front buy-in to prove that you’re committed. Then CFA will build the location for you, and ensure the new location gets up and running smoothly.
Thanks for sharing! Why do you think Pizza Huts are doing so poorly, and do you think that Pizza Hut in general will be going out of business anytime soon?
I think most are run by franchise groups that own a lot of franchises.
Most likely they also own the land or can negotiate better terms because of their size. Same for negotiating with vendors and the various corporate entities as well.
E.g. it seems like it isn’t something you want to do as an individual but as a corporation that owns several. Aka you need money to even have a chance to do it in a way that makes sense.
The biggest one I know is Collins Foods Australia. It runs a significant chunk of KFC in Australia, Germany, and the Netherlands along with Taco Bell in Australia https://www.collinsfoods.com/about-us/