A Franchisee Wanting to Break Free from the Contract.

[Cisco1302013]

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I'm only 6 months into my 5-year franchise agreement yet I am already contemplating on selling my franchise. I am sure my inexperience, naivete plus my poor location (most especially) are the huge factors for my disillusionment. Perhaps I should have sought mentorship prior to even getting into business. What do I know after all? I've been an employee all my life and a daughter to parents who have been an employee and a housewife all their lives. I know nothing about business.

I was too hasty. I was too aggressive. And now I am left with the dilemma of whether to build capital again and find another location or to just give up in another 6 months when my lease contract ends with my current location.

I am still hopeful. I am just unsure of where I am going to find capital to keep things going. I did read my contract over and over again and all options require me to pay fees. So I guess my best bet is to continue until I recoup my losses. But then again, will I ever? It's a gamble. I knew it was a gamble all along. Or maybe I, again due to my inexperience, was too optimistic that I lost sight of all of the possible worst-case scenarios and am now stuck in this hell hole.

Here are the options I've been toying with:
1. Sell the franchise and pay the fees up front. Problem is, will someone buy it? And if someone does, I will already have lost 50% of my initial capital. Won't ever get the chance to recoup losses. But I am tired of dealing with a Franchisor. I hate that it seems even in business I have a boss.
2. Find a new location. Need capital again! And what if I get burned over again? Still get a dead spot. Heck, I'm starting to doubt my decision-making capabilities.

Anyway, if anybody's got a good idea, please reply to this post. You can tell I am this desperate if I am posting anonymously and soliciting advice from strangers. But any advice is as good as any. At the end of they day, the call's mine anyway so go ahead. Hit me with your best shot. (Like that 80's song.)

Thanks.

[cloudduster]

The reason why most people fail in business is the fact that they don't really know what to do with it. Obviously, Discovery Channel's "the best plan is not to have any plans at all" sort of thiggy will never work. Have you talked to someone who has the knowledge and skills to run such a business while you provide the capital?

If worst comes to worst, getting rid of it this early might actually save you from furthering your losses. Business closures happen everywhere and it's never a sign of ones failure. Failure is when you keep doing the same thing and expecting better results. We all make mistakes and sometimes they're just darn too costly. Next time, it pays to plan ahead and not simply jump into the bandwagon, so to speak

[Kenshiro]

Unsa diay imo product TS so that I could provide better suggestions.

[bleedingboi]

I'm only 6 months into my 5-year franchise agreement yet I am already contemplating on selling my franchise. I am sure my inexperience, naivete plus my poor location (most especially) are the huge factors for my disillusionment. Perhaps I should have sought mentorship prior to even getting into business. What do I know after all? I've been an employee all my life and a daughter to parents who have been an employee and a housewife all their lives. I know nothing about business.

I was too hasty. I was too aggressive. And now I am left with the dilemma of whether to build capital again and find another location or to just give up in another 6 months when my lease contract ends with my current location.

I am still hopeful. I am just unsure of where I am going to find capital to keep things going. I did read my contract over and over again and all options require me to pay fees. So I guess my best bet is to continue until I recoup my losses. But then again, will I ever? It's a gamble. I knew it was a gamble all along. Or maybe I, again due to my inexperience, was too optimistic that I lost sight of all of the possible worst-case scenarios and am now stuck in this hell hole.

Here are the options I've been toying with:
1. Sell the franchise and pay the fees up front. Problem is, will someone buy it? And if someone does, I will already have lost 50% of my initial capital. Won't ever get the chance to recoup losses. But I am tired of dealing with a Franchisor. I hate that it seems even in business I have a boss.
2. Find a new location. Need capital again! And what if I get burned over again? Still get a dead spot. Heck, I'm starting to doubt my decision-making capabilities.

Anyway, if anybody's got a good idea, please reply to this post. You can tell I am this desperate if I am posting anonymously and soliciting advice from strangers. But any advice is as good as any. At the end of they day, the call's mine anyway so go ahead. Hit me with your best shot. (Like that 80's song.)

Thanks.

We will not know the actual problem until we know what type of business you have.

[freez3]

unsa diay ni nga franchise sis?

better find a new location. maybe it's just a location issue.
check your staff, promotions, marketing, etc and find out what went wrong.
learn something out of that bad experience.

[Cisco1302013]

Hi cloudduster. Thanks for your honest thoughts. No, I don't know anyone whom I can talk to regarding this business. It's street food concept actually. I was way too aggressive and way too confident, I know. Wish someone was there to tell
me to slow down or better yet back out. I know I would if ever I see someone about to make the same mistakes I did. And yeah plan ahead I did but I did not cover all bases. So I guess I still can't consider it a plan, huh? Yeah well for what it's worth I guess I'll have to be extra careful moving forward. I did learn my lesson. A lot of them. But the battle ain't done yet. I guess it's just begun.

[Cisco1302013]

It's food. Street food. That's about the most I can give you. Ma-technical unya kos contract. Hehe. Thanks.

[Cisco1302013]

Hi bleedingboi it's a street food concept.

[Cisco1302013]

He freez3, yes i think it's largely due to the location. That's one thing I'm trying to address but not as quickly as I'd want to coz I'm tied to a lease contract as well. Pero mao nay general idea diha. Mangitag mas maayo nga lugar. Pero mao lagi kinahanglan napud ug capital. But mao man pud nay expectation pud na magpaggawas ug kwarta for the first three yrs daw basta start up pa. So ang akoa gyud kay i'm learning my lessons the hard and expensive way gyud.

[bleedingboi]

Just a hint. always remember these rules when starting up any food business.

First Rule: "BE YOUR FIRST CUSTOMER"

Always put yourself as your first customer. You need to know what people want to eat or is presentable to consume in that location or given traffic. Just like opening a Starbucks coffee kiosk in Carbon market or selling bagoong and vegetables in high end areas like Ayala or IT park, which is pretty ridiculous or out of place. Always note that there are primary obstacles for food startups and investors in this space:

1.If the Food offered has slow adoption rates

2.If barriers of entry for this space are low

3.If there is a lack of seasoned entrepreneurs in this segment of the industry

4.If food distribution channels and systems are entrenched

Second rule: DO NOT OVERCAPITALIZE TOO MUCH or even emphasize on the idea that the bigger money you put in it, the bigger paycheck you'll recieve. Overcapitalization at the start of their business drains you extensively. Many food companies don’t need that much money to start out and if they overcapitalize, they then have to generate bigger milestones and a clear exit.