Bennigan's bankruptcy falloutby
We follow up our brief item on Bennigan’s bankruptcy from last week with a closer look at how franchisees will deal with the fallout. We also put together a slideshow of what happened to other franchises that went bankrupt.
For more on Bennigan’s, check out Don Sniegowksi’s story over at Blue Maumau, one of the best sources of franchising news on the Web. Sniegowski reports that Dallas turnaround firm CRG Partners has been eying the Bennigan’s brand.
I also want to highlight a comment left by Squeezebox on our first item:
This is a case of "franchise buyer beware"! You buy a franchise because the corporation promises to help you succeed. You sign a contract in which the corporation promises to do certain things for the franchisee in exchange for a cut of his profits. Before you buy a franchise, look at a sampling of restaurants in the chain (you select the sample, not the parent co.). Talk to the managers, staff, and customers. If you don't like what you see, run!
Solid advice. Franchising gives the impression of making business ownership easier, but ask Bennigan's franchisees this week if it really is. For more on buying a franchise, take a look at our special report from March.