Have you heard of this franchise?

Does anyone know anything about this franchise concept?

Do you have insights into the franchise network, the industry and what the trends are?

Ethnic Food Hot??

There's a press release that says that Mexican food and ethnic food is seeing high growth right now. Is this true or just PR? Has the time for ethnic food franchises arrived?

Anyone have any figures on this?

on September 17th, 2006

Halloween Express

Anyone know anything about HalloweenExpress as a franchise concept? Look at the spike in traffic (below) that they get around a two month period. They become one of the most travelled franchise websites during that period. What a way to set up shop -- have expenses for two months right during a huge boom in interest.

After Halloween, shut down the shop and go do something else until next year. Meanwhile, keep costs at a minimal; ideally, keep it at nothing.

on December 11th, 2006

Resources Available To Find The Best Franchise Fit

What resources are there to help me select which franchise network is the best fit?

on April 6th, 2006

SMALL ETHNIC RESTAURANTS

We have dozens of those here in Houston - one from each place whence came our immigrants - village by village almost.

My next door neighbor owns one - Chinese. Nothing on the menu (which I can't read anyway) is served in what Americans usually think of as a Chinese restaurant. General Tso never ate General Tso's Chicken, if you catch my drift. 

No one in the restaurant ever speaks English, though I suspect many are able to.

They are popular with their target clientele because they have not Americanized the food. It is just as it was in the old country. Much of what is on the menu would make your average American diner wretch from being told what was in it or fom actually seeing what's in the dish - for those things that are even recognizeable - most of it is chopped rather small. Try wine pairing stewed pig's stomach. The animal genitalia dishes are easier to wine pair.

A Falastinian neighbor is about to open your customary Middle East rotisserie. His sign is in Arabic. His menu is in Arabic. It will be the local Falastinian hangout, I am certain. I doubt the Poulet Hamas (spicy) and the Poulet Fatah (Milder) will be that popular elsewhere in town, certainly not a few blocks away by the new Or Ami Synagogue. There are Nigerian and Ethiopean restaurants in town, but it is hard to imagine the word "cuisine" being associated with a menu from a country where everyone is starving and dropping from hommoragic fever - Chez Ebola? There too the body parts in the ragout may not have broad appeal in a country where obesity is the disease du jour. What Houstonians throw up is more appealing than what is served in those restaurants. A friend of mine who is more adventurous than I wretched for almost a week from the goat gland stew.

But, I am certain that it will all soon be offered as the ticket to becoming your own successful boss in some franchise incarnation. After all, though they may be dying faster than they can reproduce, there are so many millions of Africans who regularly spend $ 7,000,000,000 for this, that and the other thing and represent a "niche" market into which you may be admitted to the ground floor by someone who doesn't sell franchises but awards them.

Richard Solomonwww.FranchiseRemedies.com

Posted by RichardSolomon on August 28th, 2007

Vedic Math??

I just read this in our "off the wire" section of trade journal news feeds. The following thre me for a loop.

"Math Monkey™, a Miami-based supplemental education company that teaches Vedic math... is now opening franchises in South Florida and beyond."

Vedic Math?? What's that? Is that math that includes zeroes? (The concept of zero was invented in India. Sounds like some Hindu Maharastra voodoo thing. But in googling, I found this out.

"Vedic Mathematics" is the name given to the ancient system of mathematics, or, to be precise, a unique technique of calculations based on simple rules and principles, with which any mathematical problem — be it arithmetic, algebra, geometry or trigonometry — can be solved, hold your breath, orally!

Never heard of this thing before. I was raised in a family in which we thought the abacus was supreme. Interesting concept. I can compute large numbers and complex problems without writing it down.

If you want to find the square of 45, you can employ the Ekadhikena Purvena sutra ("By one more than the one before"). The rule says since the first digit is 4 and the second one is 5, you will first have to multiply 4 (4 +1), that is 4 X 5, which is equal to 20 and then multiply 5 with 5, which is 25. Viola! The answer is 2025. Now, you can employ this method to multiply all numbers ending with 5.

Craig

on August 7th, 2006

Liberty Tax Services

Mr MauMau and experts,

I'm a prospective buyer of a Liberty Tax Services franchise. They only give out their UFOCs at their seminars in Virgina Beach (at least my contact person tells me that's where & when they will give me mine). I don't see on your website (or Jackson-Hewitt either). And, I cannot find it on Cal-Easi. I've searched under "Liberty," "Tax," "Liberty Tax," etc, with the boxes checked for "contains" and "ignor punctuation," but cannot find what I'm looking for. I know Liberty Tax is in CA. Can you guide me?

on December 16th, 2007

Low Traffic Franchise

I have great location with 15,000 car count in small town.

any food franchise that would fit this? 

Thanks,Matt

on September 25th, 2006

Available Resources for the Best Franchise Fit

Check out Blue MauMau's Web Resources, Who's looking Out for You? There are a number of associations and organizations that can give you insight. However, you also have:

  • Franchise brokers
  • Franchiser Advertising Directories
  • Profile Assessments

And more. Franchise brokers may give you a profile assessment to determine your interests and aptitudes. They presumably would then guide you to the franchisor that they represent in which they feel there is the best fit. However, that may mean that if you have more money available that they might steer you to a more weighty investment so that they receive more money from the franchisor.

on April 6th, 2006

Liberty UFOC @ CALEASI

Posted by Truth in Franchising on December 16th, 2007

How to Find UFOCs

  1. Do whois search on their website.
  2. You will see that the registrant of the Liberty Tax website is JTH Inc.
  3. Do a search on Caleasi for "JTH" and you will get the Liberty Tax  UFOC. 

Michael Webster PhD LLBFranchise News

Posted by michael webster on December 16th, 2007

Liberty Tax

I seem to recall that Susan Kezios did some work with their f'zees. Don't remember the specifics, but you could always call her, the website is www.franchisee.org.

on December 17th, 2007

Calling Franchise Gurus

How do you tackle this problem of a small town with a street that only has traffic of 15,000 cars per day? It seems that franchises with low fixed costs are the way to go. If fixed costs are high, like an expensive Burger King, you won't have enough traffic to feed the beast. So maybe you look at low start-up cost franchises.

Here's a list of only food businesses with start-up costs under $20,000 from FranchiseGator's Low Cost Franchise Site.

  • Wine Lovers
  • Candy Bouquet
  • Coffee Heaven
  • Eccellente Gourmet Coffee
  • Java Dave's Coffee
  • Jugo Juice

It looks like this list is pretty heavily weighed down with Coffee Houses.  That's interesting considering how the donut shops are also leaning more to coffee.

So how do you brokers and consultants handle franchise recommendations for small town America? 

Craig

on September 25th, 2006

Liberty Link Doesn't Link

TIF,

The link you provided does not work.

Mr. Blue MauMau

on December 16th, 2007

Liberty Tax Services UFOC

Thanks Michael and TIF,

Following your instructions, this is what I discovered.

Technical note: Cal-Easi's dbase uses some sort of dynamic code in its search URL so that a search can not be saved and linked to. That is why the links that have been copied here are not working. However, its individual pdf files can be linked to.

on December 17th, 2007

The Plot Thickens ---What is going on in Maryland?

It appears that Retrofitness offered a Rescission in Maryland just recently, in July, for violations of Maryland State Law and a Consent Order was published and can be read on Google. The injured franchisee did not have to forfeit her rights under the Maryland law to a civil action. In fact the Rescission Offer states specifically and clearly that she will retain her rights to a civil suit.

What is going on? Why were D&R of Coffee Beanery offered different terms in their Rescission Offer from CB that was negotiated by the State of Maryland with DLA Piper representing CB?

What did CB/DLA Piper bring to the table in Maryland? Why was this "special" rescission negotiated, that so mislead Deborah and Richard because it indicated that they would have to forfeit their rights to a civil action if they accepted the Rescission.

Why did Dale Cantone then personally urge them to arbitrate and why in arbitration were they destroyed?

Something is definitely wrong with this picture.

on August 27th, 2007

SMALL TOWN AMERICA

Small town America is not the place to invest in any franchised business unless it is at an exit on a busy Interstste highway where there are lots of gas stations, and the site is right there at the freeway exit and is selling sandwiches, burgers, fries and cold beer..

A wine store in a small town is my idea of suicide. A wine store in any city unless you really have a lot of experience in the wine business (in which case you don't need a franchise) is another way to leave this world broke. These other so called low entry cost franchises are similarly low quality/lacking durability deals. If you're selling something called Jugo Juice in small town Texas, somebody's gonna think you're an Al Quaeda cell.

Does Candy Bouquet specialize in Moon Pies? 

Richard Solomonwww.FranchiseRemedies.com

Posted by RichardSolomon on August 28th, 2007

Area Devoloper's UFOC

Mr Blue MM found an UFOC for prospective Area Developer. (I was shocked when it started off saying min fran fee was 100,000! I was told less that $50,000.

 Using your search terms, I did find a UFOC for 1/31/05, with edits to update to 1/31/06.

 Thank you for your help everyone.

Posted by Dadof4 on December 17th, 2007

Merry Land ?

You are right I have read all of the Consent Orders issued by Maryland and recison is offered plus the right of private action

Why is Cantone allowing CB to sell to Maryland residents?

Has no shame?

This could be the real Cantone letting everyone know just how little the franchise laws mean to anyone except the zees.

Dale Cantone set R&D up. Now that I think about, wasn't this done in an election year?

The Attorney General who had been in Maryland for over 20 years retired. Maybe someone thought they may need a job soon?

on August 27th, 2007

Retrofitness misinformation from their website below...

The primary advantage of owning a franchise is that you are in business for yourself but not by yourself.

According to recent studies on franchises...

According to the United States Department of Commerce, 90% of franchise businesses are still operating after 10 years, while 82% of independent businesses have failed.

38% of independent businesses fail in the first year while less than 5% of franchised businesses fail in the first year.

Total franchise sales exceed $1 trillion.
Franchises represent 40% of all sales in the United States, while representing only 8% of all businesses.

94% of franchise owners consider themselves successful.

75% of franchise owners would repeat their franchise again while only 39% of Americans would repeat their jobs or businesses.

Retro Fitness® offers you the opportunity to be your own boss, and build your own successful business based on your hard work. Your success is enhanced as well by the successes of other franchisees without any extra effort from you.

on August 27th, 2007

Lies by Retrofitness

Misinformation on the Internet from Franchisors is rampant but yet the FTC does nothing because apparently this is not advertising.

The FTC is responsible for advertising on the Internet but we see this is just another blank check given to franchisors and potential franchisees will be taken in, thinking that franchisors can't lie on the Internet.

on December 31st, 2007

Dale curries favor with voters by siding with Coffee Beanery?

Yes this makes great sense? Dale would purposely side with Coffee Beanery a Michigan based company so he gain votes from Marylanders? Are you out of your mind? Maryland is liberal democrat tax and spend state.

Wow you can really connect them dots!

on August 27th, 2007

UNTRUE SUCCESS PERCENTAGES

Those statistics are and always were incorrect. The Dept of Commerce "survey" was completely incompetent and based upon inadequate response. Subsequent research by respected business school faculty reveal that there is no material difference in the success/failure rate between franchised and independent small business start ups. 

Richard Solomonwww.FranchiseRemedies.com

Posted by RichardSolomon on August 27th, 2007

Yes! all the false info about franchising spread to the Public

In a country where we research almost everything and there are government grants to study the sex life of the turtle, etc. it is odd that there is no reliable government research concerning franchising where franchiSEE success or failure is part of the research. I believe that there is no reliable government or academic research concerning franchiSEE failure because of the cooperation in the status quo to obscure and hide the failure rate of first -generation franchisees from new first generation franchisees who build new units for the franchisors.

Apparently, as long as the franchisors are compliant with UFOC's, it doesn't matter to the State how high the failure rate of the original first-generation franchisees may be. The failure rate of first-generation franchisees is ignored under the law.

When the government talks about the success of franchising, they are talking about the success of franchisors who can stand disproportionately on the backs of failed franchisees who made it through the first two, three, four, years attempting to break even, and then failed. As long as the franchisors can control the assets and acquire the businesses in failure for third parties who take over the business this is a success and NOT a failure for the franchisor. Managed churning of first-generation franchisees increases the visibility of Networks and it is on the basis of the visibility that new franchises are sold. Failed franchisees are generaly invisible and only a small proportion make it to the courts.

We see that blogger "Truth in Franchising" has integrity. He says they are compliant and that they expect franchisees to do their due diligence and he doesn't deny that he sells franchises with very high failure rates.

on August 27th, 2007

Yes! all the false info about franchising spread to the Public

In a country where we research almost everything and there are government grants to study the sex life of the turtle, etc. it is odd that there is no reliable government research concerning franchising where franchiSEE success or failure is part of the research. I believe that there is no reliable government or academic research concerning franchiSEE failure because of the cooperation in the status quo to obscure and hide the failure rate of first -generation franchisees from new first generation franchisees who build new units for the franchisors.

Apparently, as long as the franchisors are compliant with UFOC's, it doesn't matter to the State how high the failure rate of the original first-generation franchisees may be. The failure rate of first-generation franchisees is ignored under the law.

When the government talks about the success of franchising, they are talking about the success of franchisors who can stand disproportionately on the backs of failed franchisees who made it through the first two, three, four, years attempting to break even, and then failed. As long as the franchisors can control the assets and acquire the businesses in failure for third parties who take over the business this is a success and NOT a failure for the franchisor. Managed churning of first-generation franchisees increases the visibility of Networks and it is on the basis of the visibility that new franchises are sold. Failed franchisees are generaly invisible and only a small proportion make it to the courts.

We see that blogger "Truth in Franchising" has integrity. He says they are compliant and that they expect franchisees to do their due diligence and he doesn't deny that he sells franchises with very high failure rates.

on August 27th, 2007

Link to Info

Why don't you provide the actual link to where this data was complied?  Because it looks a pile to me.

Michael Webster PhD LLB

Franchise News

Posted by michael webster on August 28th, 2007

How Much Does Cantone Cost?

I googled the site for Md.

Here is what I found:
7/23 Guard A Kid recision plus right of private action

5/30 System 4 LLC recision plus right of private action

5/14 Wheel Repair Solutions recision and right of private action

2/23 Our Town America recision and right of private action

R&D were telling the truth
They are the only ones who had to waive the right of private action

Why?

Why is Cantone allowing CB to prey on Maryland people?

Maybe Janet Sparks can investigate and ask why R&D were betrayed?

In light of the Orders all haveing the right of private action plus recision , Dale should answer for leading R&D to bankruptcy.

What did it cost for this sanction to work against R&R and not CB?

on August 27th, 2007

Gee you like to put words in my mouth...

You owe me an apology!

Posted by Truth in Franchising on August 27th, 2007

Gee I also did not say I don't beat my wife...

Gee I also did not say I don't drown puppies...

Gee I also did not say I don't torture cats...

Gee I also did not say I wasn't a mass murderer...

Gee I also did not say I am not responsible for global warming...

Gee I also did not say I didn't rig the Bush vs. Gore election...

Gee I also did not say I wasn't part of the JFK conspiracy...

Posted by Truth in Franchising on August 27th, 2007

hmmm...maybe you will like this tidbit...

It was written: I believe that there is no reliable government or academic research concerning franchiSEE failure because of the cooperation in the status quo to obscure and hide the failure rate of first -generation franchisees from new first generation franchisees who build new units for the franchisors.

My reply: Oh I don't know about the reason why, but here is something that might interest you.

We now turn our attention to the extent of entry and exit by both franchisors and franchisees. There is a perception that opportunities for franchisors and franchisees are burgeoning. There is some truth to this as many new firms get involved in franchising each year. But there is also a perception that franchising is safe, especially for franchisees as compared to independent business start-ups. The data we present below show that, in reality, substantial business risks exist for individuals who choose to invest in a franchise. In fact, franchising is no safer on average than independent business ownership, and in some cases is actually more risky. . . . We conclude that the data contradict the notion that investing in a franchised business is a risk-free or very low-risk endeavor. - The Economics of Franchising by Roger D. Blair and Francine Lafontaine, Cambridge University Press © 2005

on August 28th, 2007

RetroFitness Franchise Offering Link

http://www.retrofranchising.com/WhyFranchise.aspx

on August 28th, 2007

Thank God for Google who may save our Democracy

The sunshine laws didn't work but maybe Google, the people's library, will help us to preserve our democracy for our children and grsndchildren.

It will not be possible for government to operate under cover of darkness and we may be able to make our elected officials accountable to the people. Ordinary people can now research on the Internet and watch what government is doing. A few years ago, there was a project that was attempted by an MIT graduate student who wanted to track the comings and goings of public officials to make government more accountable but I think it failed.

Dale Cantone and the State of Maryland owe D&R an explanation and they should rescind the rescission and start all over again. Will they use their sovereign immunity and the great power of government to silence Deborah and Richard, who are rendered powerless in bankruptcy. Will their attorney continue to represent them if they have no money to pay him?

Were Deborah and Richard set up? Sure looks like it.

on August 27th, 2007

Why do I owe you an apology?

I asked you if you sold franchises with high failure rates, etc.. and you didn't answer this question. You could deny that you sell franchises that have high failure rates but you didn't do this.

Why?

on August 27th, 2007

Why do I owe you an apology?

I asked you if you sold franchises with high failure rates, etc.. and you didn't answer this question. You could deny that you sell franchises that have high failure rates but you didn't do this.

Why?

on August 27th, 2007

Not a very good Argument by Truth in Franchising

Wouldn't it be easier just to say, "I don't sell franchises with high rate of failure of first-generation franchisees to my clients" and let it go at that.

Or, can't you say this?

on August 28th, 2007

Great post!

So what's a prospective franchisee to do? Seek value, investigate thoroughly, perform sufficient due diligence, avoid the latest and greatest fad and invest slowly but with great care.

Get real advice, the kind you pay for from reliable providers and don't rely solely on message boards or the internet for cheap data; it is a false economy!

TIF

P.S. If you can't afford proper investigation and due diligence you are not qualified to pursue a franchise investment. Additionally, if you are an idiot please avoid all business ventures.

Posted by Truth in Franchising on August 28th, 2007

Same Nonsense

You are simply repeating the same nonsense.  Please provide a link to the US Govt' site which backs up your assertions. 

Michael Webster PhD LLB

Franchise News

Posted by michael webster on August 28th, 2007

Thankyou FuwaFuwaUsagi ----Academic Research Franchising

This book, "The Economics of Franchising" is probably a very well done study of franchising but, of course, it doesn't expose "managed churning" that is permissible under the UFOC's and really doesn't indicate the truth that four out of five small businesses fail within the first five years.

Academic Research walks the thin line of trying to support the status quo and yet tell the truth, if not the whole truth. The old red herring of the independent business vs. the franchised business as a statistic is thrown out there always to confuse the real issue and the truth that four out of five small businesses will fail in five years, both independent and franchised businesses.

Actually, after the fact, I read several CPA's who indicate that four out of five small businesses fail within the first five years. Who would know better than the CPA's, who apparently don't work for the government.

I believe that there is cooperation between the FTC and the IFA and the brokers not to spread this figure around. If prospective franchisees knew the actual statistics, as demonstrated by first-generation franchisees who fail within the first five years, and which statistics are NOT required to be disclosed by the franchisors to prospective buyers, they wouldn't, of course, pony up their houses and their 403's and 401's and their sasvings for the American Dream.

The Congress snd the Department of Commerce and the FTC know this and yet they provide the appearance of regulating franchising to disclose the risk to the propspective buyer and they have the nerve and the gall to call it an investment. If the small franchised business stands two, three, or five years before failure, it does feed the economy and the franchisors and the job market, and franchisees are a calculated sacrifice under public policy and the status quo.

The UFOC's and the FA's are designed to protect the franchisors from not clearly disclosing the KNOWN statistical risk of the investments, and to transfer the duty and obligation to the buyer through the phoney baloney of the Item 20 references.

Disgusting practice by the government of the people who calculates and condones the sacrifice of some of the people to the profits of some of the corporate people. Even the FTC says ---"IF POSSIBLE" check this UFOC out with your CPA or an attorney (or something like this. The FTC knows, of course, that the visibility and the appearance of government endorsement will provide plenty of "marks", who will not do their due diligence and discover the risk, for the franchisors and the brokers who do not talk about success or risk in any statistical terms. It will always be the failure of the ZEE not to do their due diligence and not the failure of the ZOR to disclose the actual risk.

This is why Truth in Franchising Blogger cannot say that he does not sell high risk franchises to the public. This is why the SBA will guarantee loans at almost any risk and this is why the banks are willing to loan, etc...

It is only the failed franchisee who is the log on the fire of development who fails. The government doesn't fail, the banks don't fail, the franchisor doesn't fail.

Fuwa! you are an honest man! Does the end justify the means? Could franchising be regulated as well as securities and still survive?

on August 28th, 2007

Researching franchises is the answer!

There are a lot of crappy franchises in the marketplace. A prospective franchisee should seek value, investigate thoroughly, perform sufficient due diligence, avoid the latest and greatest fad, invest slowly but with great care, carefully consider the Item 20 transfers and closures and talk with current and former franchisees.

Posted by Truth in Franchising on August 28th, 2007

Lafontaine

Interesting comment... as I recall, she was in the past a proponent of franchising.

on August 28th, 2007

I SEE IT THE SAME WAY

My research tells me the same thing - that franchising is not a leg up on survivability. It also tells me that the failure rate amongst new franchisors is probably over 80 %. These franchisors go bankrupt, and their franchise agreements' liquidated damages clauses are assets of the bankrupt estate. The creditors can try to enforce them notwithstanding that the franchisor went broke.

People have no idea what they are looking at when they go to discovery day, have some franchise "consultant" who gets paid by the franchisor they buy from "help" them with due diligence, and get a $ 250 lawyer to "read the contract".

That is a prescription for disaster.  

 

Richard Solomonwww.FranchiseRemedies.com

Posted by RichardSolomon on August 28th, 2007

Lafontaine Continued

Fuwa,

Don’t know where in the book you got that quote, perhaps you could cite page number or source? Here’s a direct quote from the preface of the same book, “The Economics of Franchising.”

“In most situations, franchising works very well for franchisors, franchisees, and consumers alike, which is why it has grown to the extent that it has. Because it works well most of the time, we expect that franchising will continue to flourish in the world economy. At the same time, however, we know from economic principles that franchise relationships are by their very nature fraught with many difficulties arising essentially from differences between the needs and goals of the franchisors and those of the franchisees.”

You can see that quote here:

http://www.cambridge.org/catalogue/catalogue.asp?isbn=9780521772525&ss=fro

Dante

on August 29th, 2007

An excellent reply!

When was the last time you beat your wife?

Posted by Truth in Franchising on August 28th, 2007

I agree with you the this is crap

I am just posting the info to point out that it is in fact crap!

on August 28th, 2007

PATRIOT EXPRESS LOAN INITIATIVE ----Sacrificing Vets

This comment has been moved here.

on August 28th, 2007

Truth from our Killer Due Diligence Attorney ---Solomon/Muldoon

TRUTH from Richard Solomon, Franchise Remedies.com concerning franchising

Richard just can't help telling the truth --and if the rate of failure is 80% among the new franchisors, the Patriot Express Pilot Loan Program will mean that many of the VETS and their families will be destroyed financially, and emotionally damaged by the process of failure.

Richard's $1,000 NEGATIVE due diligence check is the best deal in town for prospective franchisees. Maybe we can get a quick Executive Order or something that veterans will not be given SBA Loans unless they can demonstrate that they did Due Diligence with Experts and Richard Solomon could head the Committee to List the Designated Due Diligence Experts who would also appear on the SBA Registry along with the Preferred Bankers.

on August 28th, 2007

As lead in to a

As lead in to a thought... 

Academic analysis had lead to a dramatic shift in the financial markets, that analyssi lead to the idea of passive asset management, based on  asset allocation, MPT, and rebalancing.   Most of the serious money uses this appraoch, where as 20 years ago it was just a quaint academic idea.   

The quaint academic idea above was the result of asking  a simple question: what factor(s) accounted  for what percentage of a portfolio's return?

The few studies I have seen on CEO compensation yield a similar result, which is that CEO or upper management of  a company has little to do with its overall return.  The economic cycle and financing are far more powerful determinants.

 At any rate here is my thought: 

After a few years of looking at franchising  I suspect that careful analysis will show that the "franchise brand" or "franchise system" has very little to do with success and that other factors such as the business cycle, rent per dollar of gross, price of unskilled labor are far more predictors of success than the franchise model itself.

As a hypothesis I would suggest that a business that starts after 12 months in a recession has a statistically superior survival rate.

Regards,

FuwaFuwaUsagi , who believes the law of large numbers applies to franchises as well as financial portfolios 

on August 28th, 2007

LaFontaine --Just more of the same PR-BS for Franchising

From the two quotes aired here on Blue Mau Mau, it appears that this book is just more, and the latest, PR to maintain the status quo of franchising and to cloud the issue of just how risky franchising is for franchisees. I assume it also doesn't address the generally low return to the franchisee on the investment in many retail business opportunities. I assume it doesn't address the failure of so many first-generation franchisees to survive the term of the contract. .

So many in academic circles are used and apparently like being used to "Bless" the status quo. Who commissioned this book and who reads this book that was published by the Cambridge University Press? Are these books used in Economics Courses to produce new Economists? How can the status quo be changed if the whole truth is not told by our academic community and by our legal community and scholars who also appear to have been captured by corporate interests.

Again, we note that the United Kingdom does not regulate franchising because the Minister of Industry does not want to be in the position of lulling prospective UK franchisees into a false sense of security and she is hoping that the banks will be responsible and that the British people will be warned of the great RISK of franchising a business and do their own due diligence.

Our American franchisors have been out in the global economy for a long time and they are working the fertile fields all over the world. Just too bad that new prospects all over the world will never be given any hard statistics on the actual failure rare of the first-generation franchises, that reflects the failure rate of the franchised business opportunity being sold to them.

This NEW capitalism that appears to be growing throughout the world is immoral when it captures the caspital and labor of middle-class working people to perpetuate corporate profits without disclosing the true and real risk of the investment in some statisticasl form to the buyers of these so- called proven concepts.

on August 29th, 2007

Economics of Franchising

$5 that Fuwa has the book, read the book, will provide the page, while Dante our new resident business thought leader has read the introduction.

Michael Webster PhD LLB

Franchise News

Posted by michael webster on August 29th, 2007

as you requested...and more

 

 

 

 

 

 

Chapter 2 - Four Popular Misconceptions about Franchising

2.2 Entry and Exit

Other entries that should intrigue you are:

"There are many misconceptions surrounding franchising in the United States and abroad. In our view, these misconceptions result from relying on casual impressions rather than a careful evaluation of the empirical evidence" 

 "We begin with the notion that franchising has been growing at a phenomenal rate in the U.S. for several decades. As we shall show, this impression is misleading: for the last two decades at least, our best estimates indicate that franchising in the U.S. has grown, at most, at rates commensurate with the rest of the economy."

"we find that the notion that franchising poses substantially fewer business risks for franchisees than starting an independent business is not supported by the data"

I would suggest not only reading the book, but more importantly look at the data and review the methodology applied to it.  It is far more important to understand the primary sources than the authors interpretation of it.  Do not fall for what passes for an education in the U.S., books are generally interpretations not translations, therefore you need to examine the predicates carefully.

FuwaFuwaUsagi 

 

on August 29th, 2007

Retrofitness Tries To Sell Franchises Using Bogus Figures

Retrofitness and its franchise director needs to read the facts before posting bogus stats on their site. Here's actually what is known:

on August 28th, 2007