Well, you have to go to Australia to buy these Pizza Hell franchises.
Hell has been torture for Matt Blomfield – so he’s auctioning his $830,000 Auckland store for a $1 reserve.
Mr Blomfield, a Hell Pizza franchisee, is so fed up with the New Zealand owner TPF Group’s handling of the business that he’s willing to take a loss selling up his five stores.
“I just want to get the business sold, pay all the bills and move on with my life.”
Why is this business model not making money? Here are potential reasons from the article:
The Herald has also sighted emails from franchisees complaining of the lack of support from TPF, the high cost of ingredients – which they can only purchase from TPF’s own supply and distribution operation – and what they say is unsatisfactory marketing.
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
Why would this guy set himself up to lose almost a million dollars? That is such a huge gap between what he paid for these businesses and what he may sell them for. These stores must be doing a few hundred dollars a week to justify such a low price, or be financed with an extremely high debt.