The Wall Street Journal on Franchise Blogs
March 24, 2009 by Sean Kelly
Filed under Business
Blogs and blogging is transforming the way franchise opportunities are researched, marketed and selected by franchise buyers. Blogs are also giving franchise owners a chance to interact as they never have before. And the mainstream business media is starting to take notice.
Today, the Wall Street Journal published Richard Gibson’s story Blogs Provide Insight to Would-Be Franchisee. While FranchisePick.com escaped mention (undoubtedly because the Wall Street Journal is nervous we’re eclipsing them ;)), Gibson featured one of my other blogs, Unhappy Franchisee. Here’s my 84 words of WSJ fame:
Unhappy Franchisee (www.unhappyfranchisee.com). Franchisees with gripes about their business can post them at this Web site, run by multisite blogger Sean Kelly. The site sorts anonymous concerns and complaints by brand. Mr. Kelly says he was put off by the promotional hype he had read in the franchise trade press about numerous concepts. “Almost nobody was writing anything bad,” he says, “and I wanted to give those with negative experiences a voice.” The site encourages visitors to post closures of franchises in their communities.
Like FranchisePick.com, the purpose of UnhappyFranchisee.com is not to be “gripe site,” but to have frank and honest discussions about the real nature of the sometimes turbulent franchise relationship.
Other sites featured in the article include Blue MauMau (www.bluemaumau.com), Franchise-Chat (www.franchise-chat.com), The Franchise Pundit (franchisepundit.com), & Rush On Business (www.rushonbusiness.com).
Notable sites that escaped mention include FranchisePick.Com, FranBest.com, TopNewFranchises.com, Michael Webster’s The BizOpp News, and Joel Libava’s The Franchise King blog. While not a blog, Richard Solomon’s Franchise Remedies also includes a wealth of information and insights.
Thanks to Richard Gibson for including our humble site, and thanks to all you who have contributed through your comments, information and insights.
WHAT DO YOU THINK? HOW IS BLOGGING IMPACTING FRANCHISING? SHARE A COMMENT BELOW.
graphic: unhappy franchisee
Congratulations, Sean! That’s awesome!!
Good for the WSJ who did mention the “Unhappy Franchisee” blog that Sean provides for franchisees. This is a valuable service that Sean provides for franchisees to express their unhappiness with their franchise adventure. Hopefully, Mr. Gibson reads Franchise Pick, as well.
I have Emailed Mr. Gibson once, or twice? –can’t remember — when I thought that the WSJ was giving the wrong impression to prospective franchisees in certain articles that were correct in every respect, except, perhaps, all of the facts bearing on the subject matter of risk for prospective franchisees were not clearly covered.
That is, in the WSJ coverage of the SBA failure rates, it would help if the WSJ clearly pointed out that the SBA failure rate for franchisees doesn’t represent the actual failure rate for first-owner franchisees because it doesn’t reflect the failure rate of those who borrowed against their home equities or 401’s, etc. and then failed to thrive and voluntarily terminated or were terminated by their franchisors. The fire sale of the assets of these failures goes unnoticed when the franchisee either goes into bankruptcy or continues to pay on the home equity loans.
It is good that the WSJ has recognized the twitter of those who have been exposed to the “dark side of franchising” and that the bigger business media can be influenced by the Franchise Blogs to do a deeper investigation of the franchise model and franchisor-franchisee relationship, as developed under the law.
Thank you for the shout out. NOW, my feelings are not hurt as bad.
The Franchise King
Joel Libava
I know, Joel Libava, that you work in an area where things are tough! and the economy is rough in terms of employment. I think the WSJ didn’t mean to hurt your feelings.
I respect you because you are NOT a member of the IFA and because I do believe that you do LEVEL with your clients, many of whom are retired VETS, and will warn your clients about the dark side of franchising, even if this works against your own best interests in many instances.
I am not against franchising if the franchisee truly understands the risks and the trap that is presented by a long-term contract, ten years or more, on a business investment that has odds for first-owner franchisees of 50% failure in the first five years.
You are paid by your clients, aren’t you, and not by the franchisor. Is this correct?
Regards and good luck!
Carol
Medical Spa MD was used by three different groups of franchisees to communicate outside of the stream provided by their med spa franchisors. Short story. all three medspa franchises folded.
I’ve been pretty darn successful with owning 5 franchised restaurants, but if I had the interaction and data that is available online NOW, I would have protected my personal interests much better. The internet and franchise blogs are leveling the playing field, and that is a good thing.
With every blog or article there is always some bias, that’s just the way it is. And as to a franchise being right for everyone, I agree with Joel. Everyone has different needs, talents, abilities. With proper research, one can see if that’s really the best option to get into.
Hi Carol,
Thank you so much for saying those nice things. I am paid by the franchisors, but it does not change the way I do business. I talk a lot of folks out of becoming franchise owners for various reasons.
It is all about doing the right thing. Learned that from my late father.
The Franchise King
Joel Libava