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Be Wary of Hot Franchises
Dr. Jeffrey R. Cornwall: “I would recommend being very careful about buying franchises in any of these areas at this point. Because they are “hot” means they will be pricy. If a franchise is over priced, it can hurt the entrepreneur’s chances for success by using too much precious start-up capital for fees that go to the franchisor for the privilege to get into their game. The best time to take advantage of a franchise is in its first year or two of growth. By now franchises in these “hot” sectors are probably relatively over-priced.”
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