blogdog, you are absolutely spot on, franchises are in the business of selling, franchises. While some do maintain a small group or even anything up to half the stores as company owned, many don't.
Seriously which business model would you prefer, spending however many thousand dollars to start a business, and then do the same over and over again setting up each store and incurring the costs. Or would you prefer to do this once or twice then recoup the costs by selling the model to investor's who want to own a business without all the guess work or starting from scratch, plus make a nice profit on these sales, and then make an on going 2-10% of revenue of all the businesses that you sell to these investors.
I know which option i would prefer and which option would make a lot more money for a lot less risk. Because you are transferring the majority of the risk to the investor purchasing the franchises.
|