Chain restaurants often provide a lucrative investment opportunity, but the dynamics between franchisees and parent companies can lead to significant risks. Franchisees like Scott Raifer and Jerry Stephan have reported issues with profitability and support from Dickey's Barbecue Pit. Raifer faces $500,000 in debt after his location closed within two years. Franchisees expressed disillusionment, believing they were in supportive business relationships, only to face financial pressures and unmet promises from the franchisor.
"It was the worst financial decision I ever made," said Scott Raifer, who bought a Dickey's franchise and opened it in Freeport on Long Island.
According to the New York Post, Raifer is now $500,000 in debt and faces foreclosure on his home.
"I was under the incorrect assumption that we were in business together - if I did well, they did well," Raifer said, noting that his location closed in 2022.
Jerry Stephan ... says that he paid $20,000 to open the first location, but that Dickey's would back out of the deal for the other stores without explanation.
#franchise-investment #chain-restaurants #business-risks #dickeys-barbecue-pit #franchisee-challenges
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