The greatest misrepresentation is: “franchises are less risky than independent businesses”.
Much of Nassim Nicholas Taleb‘s work is about risk.
Humans are extremely limited in their ability to determine financial risk accurately.
It is now the scientific consensus that our risk-avoidance mechanism is not mediated by the cognitive modules of our brain, but rather by the emotional ones. This may have made us fit for the Pleistocene era.
Our risk machinery is designed to run away from tigers; it is not designed for the information-laden modern world.
Mom-and-pops who are 1st and only “one-off” small business owners face an impossible task in assessing franchise risks.