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it seems to me that the franchise makes money and dont care if the business does well

i would love to find a business that would make me money if i bought it but without spending an enormous amount on buying a franchise name i do not see it making money why is that

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The BAF Group LLC
MD

Many, many franchisees make money. Not all franchises are "bloodsuckers". Particularly for people who do not have the experience, franchises can help with training that you could not acquire elsewhere. And they provide support, in some cases for businesses that would spend almost the same amount of money to get those services outside of a franchise operation.

And branding. Look at names like McDonald's, Subway and the like. How long, how much money do you think it would cost you to get the same kind of name recognition that you could have IMMEDIATELY upon buying one of their franchises?

But there are limits. Subway has a great name, but they are still putting franchises up on almost every street corner, which dilutes the Revenue the individual store owner can generate. In some ways, as a Subway franchise owner you could end up with the franchisor being one of your biggest competitors.

There is nothing that says you can't compete against that and open your own, independent sub shop. Lots of people do that. But if you are in head-to-head competition with a franchise brand, you have to know what you are doing and how to compete, in order to be successful. And that is not limited to competing with franchises. Starbucks is not a fanchise; you can compete against that Company in coffee, but you really need to know what you are doing, so that you don't get stomped in the process.

Some franchises are great! Some...not so hot. Is it worth it? Well, if you look at it from a "supply and demand" perspective, if it is not worth the money, people will eventually stop buying. For some people, franchising is the only way to go. Some...they don't need it.

It would be a serious mistake to condemn franchising as a general rule.

Sep 7, 2009

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