Get in touch with a customer loyalty program provider and get something tailored. There is this novae . io

They also have something called cryptmi, you can see that one too maybe

What has he done in terms of marketing? What is the franchisor saying? Did he attend their workshop/course?

This is a big deal and needs to be priority one. $130-150 in sales is like 8 sales! He needs to drive top line immediately. He cannot break the rules with the franchisor but needs a heavy push here

My family used to operate ~30 franchise businesses for about 30 years and they were positioned for morning traffic (people going to work, wanting to grab coffee and quick breakfast bite).

I only mention this because knowing your market and location advantage helps you make some decisions. We focused everything we did on increasing business for morning rush because those few busy hours is where our profits were. So observe the traffic in your plaza. Based on my generalized insights, older customers really like deals. Younger customers are more adventurous and are interested in novelty - so interesting flavours or unique presentation can lure them in.

Anyway, if we still had those businesses, I know for sure I would have gotten us on Tik Tok and just made a bunch of “how it’s made videos” because people constantly asked us how we make things. I’d try ASMR style editing, too.

With food, you need to appeal to the senses and create impulse feelings.

Promos like buy-one-get-one are good, but customers have to be interested in the product first for those to have greater impact.

I’ve also been to restaurants that gave a free candy or dessert if customers posted and tagged them in an Instagram story (or maybe it’s a coupon for extra boba with their next purchase instead of a free food item.) just an idea for reaching your customer’s friends for a low cost. Rewarding a small food item for a “word-of-mouth” moment seems more impactful than spending on paid ads in my opinion, which I feel isn’t as effective.

The franchise head office also sent us monthly promotions and offers to run. They would send a package of signage and decoration that helped promote the offers on-site. And then they’d make regional advertising investments to support us. Sometimes it was combo discounts, limited time seasonal flavours or products, coupons, prize draws - a different thing each month, which is part of quarterly marketing strategy.

Step one: Talk to a lawyer to understand what the implications of exiting the franchise are.

Some will have some strict language built into your franchise agreement about the amount you have to pay JUST TO CLOSE A FAILING BUSINESS. Usually, it comes down to paying a % of projected royalties as a lump sum. Sounds crazy but paying 50k to avoid losing 500k running a failing business is a good decision.

Good luck.

Which franchise? Could u dm me? Very curious.

How are your accounting books? Your franchisor should be able to give you reports funneled through qvinchy that can compare your numbers to other franchisees in your area.

I strongly recommend making sure you have accurate books so you can do a thorough analysis of where/why you are losing money. A good bookkeeper can tell you a very thorough story.

Let me know if you need any support.

There was a very good boba in Vietnam. I live in Japan and I was very impressed with the flavours in Vietnam. Here it’s overpriced 🤷 It was very cheap in Vietnam. My all time favourite was the black+ sugar milk tea boba for 25,000 dong. I don’t know what else is in it.

I googled that now, 25,000 vnd is 1.03usd

I read this book when I was in high school. 2008. I thought about opening a subway, and after reading this book, the franchise was a hard pass for me.

This guy nails it. I think most people just jump into the dream of a business owner and pour in loans and savings and end up doomed.

https://www.thefranchiseking.com/become-a-franchise-owner

500k for a boba franchise, everyone gets paid except the dude selling the boba

Try a new product

He needs to cut his losses and get out. LPT: Never buy into a franchise business. I run a very successful handyman service for 4 years now. When I started I looked into Mr Handyman which is a franchise company. They wanted a $59,000 initial franchise fee, then a 7% royalty fee in gross monthly sales, then a 3% local marketing fee, 2% advertising fee, a computer usage fee, a 1-800 number fee and on and on. I counted 22 different fees to pay them. I took $800 and bought a basic set of tools, spent $12 a month for a website and $100 for a few road signs to get started and now I have many customers and I don’t need to share a penny with anyone. Mr Handyman even want to train you how to hire people so you can manage the business. This is idiotic because never though I do well. There isn’t and never will be enough business to hire our work and sit in an office.

Half million for a boba franchise sure sounds like a scam. I was researching a similar franchise and the cost was 100k + add location/rent and furniture.

Oops… sorry to hear this. Which city is this? What can be done:

Your Dad and his partner needs to assess the competiting boba shop and identify what makes them successful. If there is something unique or something that needs improving, your dad’s shop can implement that.

Customer Feedback is important. Get a review to understand what the customer likes and dislikes. Your Dad can get vital insights into areas that need improvement.

Review cost and expenses. See what can be reduced or cut down without compromising quality. Also try getting better deals with suppliers, look at staff cost and all expenditures.

Is a marketing strategy or campaign possible? This could involve promotions, loyalty programs, or collaborations with other businesses in the plaza.

Is tweaking the menu possible? If so, to offer items that stand out or cater to a specific demand. Exploring trends in Boba industry.

Provide good customer experience: This can be in terms of service, ambiance, and any additional deals if possible.

If required seek advice from a financial consultant to manage debt and improve cash flow.

Is it possible to cut losses and sell? If things turn south, selling canbe an option.

Bankruptcy should always be a last resort. It’s best to speak to a financial advisor or legal professional to fully understand consequences.

Also if possible, it’s advisable for your Dad to consult with business experts, perhaps seeking advice from a business consultant, financial advisor, or even a franchise representative. They can provide tailored guidance based on the specifics of the situation.

You should be asking the Franchisor this question. They sold a business model that must be successful elsewhere otherwise no-one would buy it. They should be experts at helping you tweak it for success.

Saw in your one of your replies that it’s Ding Tea. Had 5 acquaintances (friends of friends) open them all over So Calif. Only one made it past the second year because they have a prime location accessible by tourists from Disneyland and Knotts berry farm. The owner that made it past the second year opened two more with one in a wealthy suburb and one in a new mall really close to Knotts- both are closed now. Like others said you are going to to have to do a lot of the traffic driving yourself and tweak the ingredients/men to make better boba drinks because from my research the franchise don’t do anything for the owners. All the locations were in great areas with good anchors and great traffic. Ding tea is getting killed by Meet Fresh and Sharetea (and other better franchises).