We are franchisees and have been trying to sell our bakery for over 12 months with no interest until recently when a baker asked if he could go through as a fresh franchisee and purchase our bakery. We had a teleconference with our BC last week and it seems BDH are putting all sorts of obstacles in the way of this baker from purchasing. We purchased our bakery for $540K and were hoping to clear $400K, now we are at the point where even $300K sounds good. We have had enough of 7 days a week 360 days a year, and it is putting a strain on us and our young family (4 children under 10). Being in the country we don't get 2UE nor Today Tonight and have been unaware of all this until my mother's friends in Sydney started asking her questions about our experiences and today after an enquiry about our welfare from another relative I decided to search online. Although we have had no real problems with our BDH dealings we do know our lease is up for renewal next June and have been advised we may have to spend up to $150K in renovating. We advised our BC we don't have the money. He said we would have to borrow but in the meantime to wait and see what is negotiated with the landlord. Our bakery is in good condition but BDH say it is not the latest corporate image we need tiles removed and wallpaper affixed, wooden menu board removed and replaced with the painted version, new cabinets etc, etc. This has caused us concern but we have been just waiting to see what the outcome is. Commercial rent in our town has gone down due to large number of vacant retail premises in town as many businesses are closing due to a downturn in business mainly as a result of the drought. We are quite distressed at reading what other franchisees have been through and we want to avoid being in that situation. Do you have any suggestions as to our best way to exit the system and losing the least amount of money.
I am a current BD Franchisee who has over the years witnessed BD DESTROY numerous Franchisees lives.. I have like all franchisees chosen to cringe but shut my mouth at the sheer ruthless action that BD TAKE WHEN THEY GET THE SNIFF OF BLOOD.. Unfortunately I am now one of the franchisees that BD HAS IN THEIR SITES.... . I am now at the point of being insolvent. I must say that i have put my heart and soul in to the buisness as well as a vast amount of money. BD are aware of the problem but instead of working with me they are circling and waiting for me to fail... the day that I cease to be able to trade they will take control of the store and sell it to the next young couple who visits one of their seminars.. AS I and my ex wife did all those years ago... There about 70 stores for sale at anytime... AND THEIR would be another 100 up for sale if the franchisees belived that they could sell them.
BD have launched a major expansion in Canada.. They are building vast numbers of company owned stores at the expense of marketing in Australia... When was the last time you saw one of the catchy ads on TV.. tHEY HAVE REDUCED THE TV advertising from some 40+ weeks per year to virtually none..they will say that the reduction is a result of change in marketing strategy but that is BS ITS ONLY A GRAB FOR FRANCHISEE MARKETING ROYALTYS. SO the AUS MARKET IS SATURATED with stores and now they are selling the new stores to the unsuspecting canucks as COBS.
I am a current opearator, been in the system for 9 years. We had a disastrous refurbishment and a new lease a few years ago. We ended up, through the comedy of errors with BD managing the project, of being an extra $550,000 in debt, and paying 120% more for rent. We did not have a say in anything - the "system" is for BD to organise everything. It's like giving them a blank cheque and say just spend what you want. When I objected to what they were doing, they at first thought I was on another planet, and then went into denial mode. The thing is, the BD strategy was to manipulated us into the position of not having a choice-you either go through with it or you walk away-and lose everything. We will probably end up losing it anyway, we have just delayed it for a while by going into more debt (an extra $400,000). Apart from the debt, the depression from which myself and my wife suffer, and the lost dreams, everything is just fine. I tried to contact Roger Guillespie a number of times (in writing, by phone), all with no response. Then I confronted him on one of his "spin visits" - after 9 years he'd never heard of me! My point is, they do not treat longer serving operators any different. We are suffering too.
I enjoy reading other peoples stories and my heart goes out to all. Now I'm in the system the only way I can see us surviving is to keep my mouth shut and just smile. If you show any sign that you are actually more intelligent that the regional manager you are digging your own grave. Support stops and the pushing/bullying begins. I think the way the regional manager can ignore any franchisee who says hello is disgusting. I actually feel like I'm back at school. So my formula is for success is (and we all had to work on these at sometime) keep being a yes person, praise BDH every time they want it, never let on that you know they're wrong AND most importantly keep your opinions to yourself. In short don't stir up head office or they'll bite. I'll let you know if it works. Return to Bakers Delight Lies Homepage