Business & Bullsh*t: The Real Reasons Franchisees and Business Owners Fail in 2026 (EP #86)

May 11
3 min read

Updated: May 16

Watch the full episode on Youtube:

https://www.youtube.com/watch?v=I4d6ytcPlNo

The Founderz Lounge Episode #86 with Don Varady and Steve Bon.

Why do franchisees and business owners fail even when they have access to better tools, stronger systems, and more information than ever before?

In this episode of Business & Bullsh*t, Don and Steve break down the real reasons franchisees and business owners fail in 2026. What starts with travel pet peeves, streaming frustration, and AI ordering quickly turns into a bigger conversation about execution, accountability, adapting to change, and why so many operators blame the brand, the model, or the market instead of looking at their own decisions. They dig into what happens when owners stop following the system, assume they know better than the playbook they bought into, or fail to adjust as technology and customer behavior keep shifting.

They also get into ChatGPT advertising, AI-driven ordering, why convenience keeps changing the game, and how fast business owners can fall behind when they ignore what is happening around them. Along the way, they mix in the usual Business & Bullsh*t chaos with strong opinions, side tangents, and a few reminders that common sense still matters.

If you are tired of excuses, business blind spots, and watching people fail for reasons that were completely avoidable, this episode is for you

Timestamps:

[00:00] Trailer and Intro

[01:25] Founderz Roundup

[02:22] AI ordering in ecom

[02:59] ChatGPT ads are coming

[03:56] Economic census frustration

[06:37] California’s new franchise bill

[09:45] Random Bullsh*t

[10:06] Streaming is becoming cable again

[13:07] AI haircut clippers

[16:02] Founderz Hot Take

[16:03] Why franchisees really fail

[18:42] Why experts blame franchisors

[21:30] Franchisor feedback and advisory councils

[23:17] Deviation kills franchisees

[23:55] Founderz Fast Five

[24:25] Travel pet peeves

[26:07] Dumb but cool products

[28:49] Business tools that feel outdated

[31:08] Snacks from the 80s and 90s

[32:39] Funniest thing seen lately

Key Takeaways:

• AI-driven ordering is going to become much more common in e-commerce, restaurants, supplements, and other buying experiences. ~Don Varady

• “It’s only a matter of time before you can get bumped to the top of what it’s putting out there.” ~Steve Bon

• Government red tape keeps making it harder for business owners to operate, even when they are just trying to build and grow. ~Steve Bon

• “Ads keep creeping back at like an alarming rate unless you pay them more to go adless.” ~Don Varady

• “Franchisees don’t fail because of a bad model… they fail because they think they’re smarter than the brand that they bought into.” ~Don Varady

• Service providers often target franchisors instead of franchisees because there is more money in selling to the whole system than to one location at a time. ~Steve Bon

• Strong franchise systems need feedback loops, but franchisees still fail when they stop following the system they bought into. ~Don Varady

• Deviation is the number one killer for a franchisee. ~Don Varady