Friday, February 26, 2010

Buying a Franchise

Why should you buy a franchise? The main purpose in buying is to get a valued company name and expertise. But you can probably duplicate the same entity you seek and acquire that expertise at no franchising cost on your own.

I have discussed this many times in the past. Buying a franchise may make sense only if you get a highly recognized brand name and you get special management expertise.

You must realize that the usual upfront fees and the royalty you pay on sales, that cover whatever management training and materials received, will probably represent about half your net earnings.

Many franchisees eventually form groups with other franchisees, to sue over contract terms because they are unhappy with their arrangement.

So, think clearly before you make a franchising decision.

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