Business Opportunity Site

The unscrupulous franchiser initially develops the franchise in a company-owned-operated store. Within this framework, the necessary expertise is developed and ALL the set-up and operating expenses are established. The franchiser then sets a franchising-fee and marketing-fee structure; these are applied to the franchisee contract and can be set in such a way so as to ensure that no profit is achieved based on the Sales volume that is projected. This sales volume is invariably and substantially less that the “predicted” volume declared in the mandatory DISCLOSURE document.

Franchising in the United States is over regulated and that is a very bad thing for our economy and small businesses, which franchised outlets are. The UK is probably smart for their stance of fewer regulations in franchising in many respects. Instead of over regulation education is much smarter. I am an Ayn Rand fan and a Friedman, Greenspan type economist type. I believe that if there were no regulations that franchise buyers would be much more apt to do more due diligence.