I have recently begun enquiring about what appeared to be a very exciting franchise opportunity .... Chesanyama.
On the surface, everything about this franchise seemed great, low start up costs, selling affordable food, and low fixed royalty payments per month. How can this recipe not work?
Intrigued and interested, I begun I few enquiries, Before the franchise will interact with you, you are required to pay a 100 k deposit. This deposit is paid into the franchise owners business account and not a lawyers trust account - strange I thought?
Hesitant to put any of my hard earned money into a strangers account, I decide to visit several of the operating stores in the Gauteng region.
Boy oh Boy was that a awakening. Every single store I visited had been running at a loss!
I had visited about 5 stores, with all of them consistent in their complaints about the Franchisor, their operations, distribution, and costing.
All of the stores I had visited, had to be putting additional money into their businesses just to survive.
Forget the payback stipulated of 10 months, these owners were just hoping to break even.
Be careful about these too good to be true business opportunities!