Episode Details

The Fall of Dickey’s BBQ: A Franchising Disaster You Need to Avoid

Episode 88 Published 1 year, 4 months ago

Description

Episode 88: On this episode of Pursuit of Profit, Cliff dives into the failing of one of the largest barbecue franchise restaurants in the U.S., Dickey's BBQ. Founded in 1941 by Travis Dickey in Dallas, TX. His children have taken over the brand and took it to a peak of around 570 units, only for it to become clouded by lawsuits, FTC complaints, franchisee bankruptcies, and a severely damaged reputation.

On this episode, we're going to break down Dickey's mistakes. We'll also discuss mistakes made by investors and franchisees and how to avoid them going forward. Dickie's is walking the same path Quiznos paved - fast growth, low franchisee profitability, and a franchisor more focused on collecting fees than building sustainable partnerships. Take a listen...

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Timestamps:

01:57 - Over expansion

04:12 - Misrepresentation of start-up costs

08:02 - Franchisee validation

14:18 - Adversarial legal tactics

15:00 - Grieve

15:34 - Evolve or die

16:32 - Poor franchisee selection

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Links:

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