Franchising as a Lottery: Payoffs due to luck not business acumen

The financial success or failure of a franchise is within the direct control of  the investor.

This is a statement that can be true or false, depending on the facts of each offering, skill set, financial situation and local environment. Hard work and “positive attitude” cannot redeem a faulty business model.

  • Most currently heavily-advertised franchise systems (less than 10 years old and 100 units open) are unproven and therefore, success is more a matter of luck than skill.

Chris Rock extends this understanding to an extreme. It’s funny because it is quite true of modern franchising where one of the two of you will become rich.

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