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Log In / Register | May 22, 2018

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Co-ops A Good Thing

Co-ops are the only way franchisees have to ensure that ad money goes for effective advertising and food co-ops are the only way to guarantee franchisees are getting the kind of buying power that a multi-thousand store chain should have. Rogue franchisors like Quiznos use the ad money to finance the dog and pony road shows to sell more franchises and bogo coupons to increase their food sales to franchisees. They compared the prices franchisees paid for food and supplies to those independants paid at Sam's a few years back to argue that franchisees weren't being gouged. Of course Q had nearly 6,000 franchisees at the time and a Q subsidiary was pocketing millions in supplier kickbacks at the time. If there are no co-ops don't buy a franchise or they'll be sucking your life's savings out of your bank account every day and there won't be a thing you can do about it.

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