Would anyone tell you if you were the last franchise investor fool?

I don’t think so.

One thing I’ve learned about the franchise business:

even when 100% of franchisors AND lawyers AND bankers AND politicians AND professional journalists would never, ever let their retirement funds go into a franchise…

you will be able to buy a doofus franchise system in every nation in this world (almost 24/7).

  • There never has been or ever will be a government recall of any franchise system.

Every franchise is 100% guaranteed to fail and succeed at the same time.

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One Response to Would anyone tell you if you were the last franchise investor fool?

  1. Carol Cross says:

    “Every franchise is 100% guaranteed to fail and (to) succeed at the same time.”

    How true!

    The generally malicious adhesory contracts are designed to give the franchisor the overwhelming advantage when the franchisee fails. The status quo deems that the “risk” of buying a franchise is hidden in the pre-sale process and ignored in the franchise agreements (the contracts of sale in which franchisees unknowingly agree to become merely the tangible asset of the franchisor), and, also, in the so-called Franchise Disclosure Document in the Unitedf States.

    This ugly unregulated business model of “franchising” is an example of capitalism at its worse that may, in the end, destroy itself by overeating the flesh of franchisees to indulge in churning and encroaching to saturate markets in unhealthy competition to maximize profits for those at the top of the financial pyramids.

    Of course, those in “the know” and our elected officials would hardly ever invest in a franchise and certainly would NEVER invest their retirement savings in any franchise venture. A franchise is a wasting asset that more often than not is worth very little at the end of the contract term. If a franchised business does “rarely” increase in value over the term of the contract, the franchisor doesn’t have to renew the agreement, and then what does the franchisee own?

    Not surprising that there is a Bill in the US Congress that would permit discharged and retired serviced persons to access their GI Education entitlement to pay for training to be a franchisee. The Patriot Express Loan Program of the SBA was supposed to be a “pilot” program to honor the troops? that will probably be extended in view of the recession.

    So Sad! Too Bad! And our voices are not heard in warning because they cannot be heard over the sound of the band and the praise of franchising in the status quo!

    Like

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