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
Do you mind saying which Franchise this is?
500k is way too much to be dropping on any Boba shop.
Agreed, which franchise scam is this?
Franchise fee is likely less than $50k and there’s probably a royalty on sales. The rest is the cost of building out the retail location, rent, wages, and other overheads. So if you’ve been in a location for a few years $500k isn’t unreasonable at all.