My dad has a franchise of 5 months that is already starting to fail. He has 250k+ put into it, and thats with a shared business partner (500k+ total.) It is located in a great plaza of food and grocery, BUT there is another boba shop 2 minutes from it. I dont know why they chose to build one so close to it. By the end of the second month things started to go downhill and getting worse and worse, only making average of $100-170 dollars a day with $135 dollars needed to pay workers hours for that day. Is there really any way to save this business? Sell the business? Bankrupcy? Any advice helpful

  • yourbizbroker@alien.topBEnglish
    1·
    10 months ago

    Business broker here.

    I’m frequently talking to new food franchisees that are immediately failing. Covid/inflation has all at once raised rents, cost of goods, and employee wages, while decreasing customers disposable income and demand.

    I’m sorry to say that if your dad’s store didn’t start off strong it’s probably not going to make it.

    If he and his partner have the funds and fortitude to double down, they can push hard on marketing and community outreach.

    If not, their only chance may be selling the business to another franchisee within the chain. Their chances of selling to an outsider is near zero.

    Boba businesses are light on assets. The value of the business is probably under $100k.