Some former and current Sears franchisees are in financial distress amid the parent company’s financial troubles, the Wall Street Journal reported. Sears has closed hundreds of its department stores and lost billions in sales since 2011. When the company in charge struggles, a franchisee often struggles with it, said Keith Miller, principal of Franchisee Advocacy Consulting, an industry group. “If you’re a handyman service, you can’t control what the retail business has done,” he said. Sixty-six Sears franchises were terminated in 2017, or 15 percent of the total, compared with just 5 percent in 2016. In 2015, the number of franchises increased 6.6 percent. A Sears spokesman said that some franchisees initially open multiple concepts before choosing one, resulting in some of the 2017 closures. “We do, on occasion, see some franchisees start their business and then go ‘dormant’ after realizing it isn’t a good fit for them,” he added. The initial investment required to open a Sears franchise is $50,000 to $110,000, according to the retailer’s website.
