Deli Delicious: The Franchise That Won’t Play Fair (2024)

Deli Delicious Franchising has been in the news lately for all the wrong reasons. Deli Delicious is a franchise that operates by implementing misleading strategies and not acting in good faith with its franchisees. As a result, the board of directors has asked for money from a franchisee by compromising their favoritism. This article will explore Deli Delicious‘s shady business practices in further detail.

About The Industry

The food industry is a significant contributor to regional economies and the U.S. economy. It is a stable industry in terms of employment and labor income due to the consistent demand for food. In addition, it employs 1.46 million workers and accounts for about 13% of all U.S. manufacturing employment. It is an industry that has developed important innovations over time, quickly responding to the changes in consumer demand and meeting the needs of 320 million American consumers.

What is happening in Deli Delicious Franchising?

Deli Delicious implements misleading strategies that result in hardships for its franchisees. For example, it has been known to offer product rebates that may be initially favorable, but end up disadvantaging the franchisees.

Rebates gained by DDFI (Deli Delicious Franchising Inc.) have caused hardships for many franchisees due to overpricing by approved vendors. Though legal for rebates to reach any level the franchisor wants, they are not acting in good faith by being the sole provider of bread and having a third party deliver for even higher costs to franchisees.

 In addition, the board of directors has asked for money from a franchisee by compromising their favoritism. Something unquestionable that should not happen.

DDFI board member borrowed $10,000 from a franchisee. Compromising that board member’s position and perception of favoritism or not acting in good faith of all other franchisees.

Complaint Source: FTC Mobile. (02/05/2019).

Conclusion

 It is clear that Deli Delicious Franchising is not acting in good faith with its franchisees. The company’s misleading strategies and lack of transparency are putting franchisees at a disadvantage. Deli Delicious needs to make changes if it wants to stay in business. Otherwise, it will continue to lose the trust of its franchisees and the public.