Franchising is ALL about Hidden structural risks

Nassim Taleb called the 2008 recession and wrote The Black Swan.

He argues that you should look at systemic risks (not individual, one-off risks).

  • Look at the bridge’s engineer, not the last truck that drove across your collapsing franchise.
  • Don’t look at the individuals, the brand, the area manager… was created to reveal those structural risks that cause 99% of the problems.

2 Responses to Franchising is ALL about Hidden structural risks

  1. Carol Cross says:

    Yes! The structural risks in this exploitive and long-term contract made possible by this hybrid and exploitive way of doing business, i.e. “franchising” is obscured from view by the red herring of the Franchise Disclosure Document that implies legitimacy of the offering.

    LET THE BUYER BEWARE and run like hell to escape the “Beast of Franchising” that is roaming the earth and consuming the the financial resources of the innocents who are merely resources to grow the businesses of the franchisors both in success and in failure of the businesses of the franchisees.


  2. Les Stewart says:


    A little over-the-top rhetorically but accurate nonetheless. Always good to hear from you. Hope the heat isn’t too bad, Les


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