Dickey’s Barbecue Pit franchise opportunity: Are you considering it?
You should be aware that data released by the Small Business Administration (SBA) indicates that Dickey’s Barbecue Pit franchise owners who qualified for SBA-backed franchise loans have a very high loan failure rate of 36%.
Are you familiar with the Dickey’s Barbecue Pit franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Dickey’s Barbecue Pit franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Dickey’s Barbecue Pit franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
It’s notable that the number of loan failures may have been obscured by the outward appearance of a growing, failure-free franchise chain.
According to its Entrepreneur franchise listing, between 2008 and 2011, the Dickey’s Barbecue Pit chain grew by 42%, adding a total of 114 franchises.
Dickey’s Barbecue Pit
| U.S. franchises in 2011: | 195 |
| Growth in franchise units 2008 – 2011 (#) | 114 |
| Growth in franchise units 2008 – 2011 (%): | 42% |
| SBA loans granted since 2001: | 83 |
| SBA loan failure rate: | 36% |
| Sources: Entrepreneur (growth), Coleman report (SBA) |
However, according to Dickey’s Barbecue Pit’s Franchise Disclosure Document 2011, 60 Dickey’s franchises (30% of the total franchises opened) were either terminated or ceased operation during that same period.
The relatively high franchise termination rate of Dickey’s Barbecue Pit seems to be a franchise red flag.
| Dickey’s Barbecue Pit Franchises 2008-2011 | |
| Franchises open January 2009: | 89 |
| Franchises added 2009-2011: | 112 |
| Franchises terminated/reaquired 2009-2011 | 60 |
| Franchises terminated/reaquired (%) | 30% |
| Sources: Dickey’s Barbecue Pit Franchise Disclosure Documents (FDDs) |
According to the 2011 FDD, Dickey’s Barbecue Pit would appear to have a termination/closure percentage of 30%, which (we believe) could reasonably be called a failure rate. (The 36% figure is a default on SBA loans since 2001, so it may be that the actual failure rate earlier in the decade was even higher than in recent years.) Perhaps the company can clarify.
Are you familiar with the Dickey’s Barbecue Pit franchise opportunity?
What do you think accounts for the high SBA loan failure rate of Dickey’s Barbecue Pit franchise owners?
What steps should Dickey’s Barbecue Pit be taking to stop further franchise failures?
Has Dickey’s Barbecue Restaurants, Inc. taken serious action to address the problems that led to these loan failures?
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ARE YOU FAMILIAR WITH THE DICKEY’S BARBECUE PIT FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR FORMER DICKEY’S BARBECUE PIT FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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View Comments
Hello, I am a franchise owner who came to own a Dickeys very differently than most, When Corporate takes over a store, they need to sell it to someone, and I bought a Failed Dickeys. This store was run by a terrible franchise owner who did everything wrong and drove the store into the ground. I had worked at another Dickeys as a minimum wage employee and I got excited about the food and this new franchise opportunity. I took over a failing Dickeys and made it into a prosperous one within a year. People love my location and ive got great employees and Ive got great food and my sales are growing. I wasn't lied to and I did my homework. Not everything in their franchise model works and to be honest I met a lot of smug ass holes over at their corporate office, its not perfect but its not a complete disaster either. Maybe I just haven't been screwed yet, but ive been happy with my decision so far.
Congratulations on your success.
It's very different buying a failed location and fixing it than it is to open one from scratch.
Got to love it when anonymous people get on here and boast about a franchise opportunity. I don't know if Dickey's is a good franchise or not but posts from anonymous should not garnish any weight on any forum. If you are a Dickey's franchise owner and you are as successful as you claim why wouldn't you leave your real name?
New store opened in Hillsboro Tx. I love their food and have been there often UNTIL they gave me a card for frequent customers. Then when I to the one with free drink. They would not honor it. The girl said she did not see it. Then refused to talk any further about it to me. I will not be back. I think this was an employee problem and not owner however if she was the best applicant for job they are in real trouble.
When I was looking into buying a Dickeys Franchise I was taking my time . I received a call from Bruce telling me that other people were looking into buying in the small town that I was exploring and that I had better make up my mind because once that city was signed it was gone.That gave me the impression that because of the size of that city a second store would not be allowed. Boy was I wrong!! On the day that I opened a nice young couple approached me and told me that they were really excited because they had just signed a contract to open a store five miles from my location. They opened three month later. It would have been better if that had at lease given me a year to build the business without competion from our own brand.
I like everyone else was given the impression that I could just open a store for under a hundred thousand dollars. Three hundred and fifty thousand dollars later with all of my life savings invested in this business and little time ,energy and desire to keep trying I have decided to just give the store away. I lasted eight month. I have notified all of existing local dickey owners to just take over my leases and they can have it.
I have spoken with bankrup lawyers and they assure me that when this is over I will not have anything left in my savings accounts personal or
corp. I am 68 years old and there does not seem to be much of a future . I have to trust in God and maybe Mr.Dickeys Baptist sister that he spoke about. That she will do the right thing but I really doubt it.
Like one of their field reps. told me. "Nobody forced you to sign"
what a nightmare!!! I am sure that a couple could make a living at this but they need to be married to it.
The idea that even if you failed and closed your business you are still responsible
For the franchise monthly royalties was a warning to me that I failed to heed.
When I told him that I did not want to that in my contract he told me that he would get back to me as he need to ask someone. A day later he said that he was told that it had to stay in the contract but that it should not be a reason for me not to sign as these business were so successful this clause would never be use. Ha, ha.
When we were in training I found it strange that when Mr Dickeys came into our classroom for his "presentation" that all question to him were prepared by us and given to him before he came into the classroom. Then his lawyer asked him those prepared question. We were not allowed to ask him anything even tho there were only twelve of us in the classroom.
Now that I am trying to get out they have sent me a letter to sign. In part it reads that in signing " I agree that any claims,rights ......you may have in the future against dickeys ........are and will be deemed to be fully, forever .....irrevocably released, waved and discharged......bla,bla, bla...... I don't think so, !,, There has got to be a brilliant lawyer out there who can help us. If anyone can help please do. There are more of us out there that are in the same boat I am in.
By the way, I never met with anyone from corp regarding site selection. No one came out so they did not advise me all all about my site selection
I'm sorry about your situation but thank you for helping others understand what really happens. I seriously considered this but did'nt follow through.
I was in a local store last week and it was empty except for me and my friend. The food was good but the store was empty at lunch time and it's the first of the month when people have more money to spend.
It's a new store.
So with all this complaining is there anyone doing a class action lawsuit against Dickeys?
There will be no class action against Dickey's. It's not because Dickey's is smart. It's because the franchise owners can't organize. They tried 2 years ago to start an association and they couldn't get together a couple of thousand dollars in start up money..
The franchisees at Dickey's think that an external force will save them. A white knight will ride in.
Dickey's franchisees will have to save themselves and it will cost money. Plan on getting 25% of the Zees to join at $1500-$2000 a year in dues.
They won't cause they are too cheap.
Oh and class actions are a pipedreams anyway. You won't get one approved. Why would you want to?
P.N.
Where is your store located at? I would like to visit your store. Thanks
[Commenters airing grievances should be extremely cautious if asked to disclose their exact locations or identities. This is one of the reasons we do not allow the exchange of personal information in the comments sections. kevin's inquiry may be innocent or he could be an employee, attorney or other representative of Dickey's trying to identify anonymous franchisees who are sharing negative experiences they don't want shared.
Commenters with a legitimate need to interact can email UnhappyFranchisee[at]gmail.com with mutual requests to exchange email addresses or messages. Thanks, ADMIN]
Commenters:
Please do not ask anonymous commenters to disclose identifying details. Usually they have very valid reasons for remaining anonymous.
Thank you.
ADMIN