When it comes to this topic I can almost ask the question in Foxworthy-ian fashion.  Remember the Jeff Foxworthy contribution to the hilarity of the Blue Collar Comedy Tour and You Might be a Redneck? Here, try this one on for size.  You know you’ve lost your mind when . . . . . you decided to franchise your own business.  Why would you ever want to do this? Oh, I know the answer to that --- because you can?

But seriously folks, this is not a wise decision.  It’s going to cost you between $15,000 and $50,000 right up front in franchise fees --- gee that sounds like pocket change.  The franchisor extracts, more like extorts, a percentage of your monthly gross sales and/or profits from you and calls them “royalties”, and whether you show a profit or not, you are still obligated to those royalty rates. And then, should you be given an opportunity to renew, you have to pay franchise renewal fees.

Owning a franchise smells more like renting a home instead of buying one.  You’re not investing in yourself, or your family, or future --- you’re investing in someone else’s.  There’s no guarantee of success in franchising anymore than in being a sole proprietor.  Be careful in your decision making process.

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The word Franchising comes from the French word meaning “freedom” or “honesty” and is the act of doing business in a franchisor-franchisee relationship, wherein the latter is authorized by the former to use their business concept for a fee and a percentage of profits and sales.  National and even international advertising, as well as support services and training are commonly made available to the franchisee by the franchisor.  The franchisee is oftentimes responsible for accounting and... (Read More)

The Word is franchising is used in a variety of ways that we here everyday, but what is Franchising?  Franchising originally came from the French words meaning honesty and freedom.  Franchising is a type of way to do business between to companies.  One party who can be coined as the franchisor creates a variety of ways of how to do business with the second party, who can be called a franchisee.  These methods of business can be categorized as physically existing or intangible... (Read More)

The Federal Trade Commission’s Franchise Rule has been updated to require franchisors to disclose more information to prospective franchise buyers. The Franchise Rule is a set of laws about selling franchises, which is supposed to protect buyers from being taken advantage of.This change has finally taken place after twelve years of debate. However, some people are criticizing the Federal Trade Commission’s laws for still not providing enough protection for potential business owners. Scams and withholding... (Read More)