Business Opportunities Weblog

September 21, 2004 by Dane Carlson | 1 Comment

In response to the this previous post, Dr. Cornwall presents some of the downsides to franchising:

It is important to keep in mind that the IFA is an advocate of franchising. These figures reflect the very broadest definition of franchising, which includes distribution companies such as car dealers, bottlers, and gas stations. It is not just the small retail business, such as a bagel shop, that most think of when the term franchise is used.

Franchising is often not the happy partnership that the marketing packages franchisors send out to interested parties. Franchisees will often band together in an almost union-like manner. In fact, one of the most common seminars for franchisors done within this industry addresses the litigation issues they face with their franchisees. Broken promises, unmet expectations, and a perception of little value for the often high monthly fees paid to the franchisor lead to these legal battles.

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Tags: Franchising, Posts