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> The substantial difference between a franchise and an pyramid scheme is that a franchisee only sells products to consumers/end-users, not the franchise itself
by pionar 8y ago
> The substantial difference between a franchise and an pyramid scheme is that a franchisee only sells products to consumers/end-users, not the franchise itself.
Not true. Most franchisors make a royalty from sales, but also make a profit from being the exclusive distributor of everything in the franchise - napkins, cups, food, etc.
Your general point is correct though.
- Someone1234 8y agoI don't understand the "Not true" there. I said the franchisee only sells products to consumers/end-users, not the franchise itself. It isn't a chain-sign up situation. Your point seems to be that the franchise makes money from franchisee reselling, but I never said otherwise...
- cooperadymas 8y agoIt looks like the GP possibly misread your comment and missed the extra 'e' on 'franchisee' in the first sentence.