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You are paying for the brand, strategy, training and lot of risk factors that are mitigated due to the franchise setup. Yes, it is still risky but starting an e
by codegeek 7y ago
You are paying for the brand, strategy, training and lot of risk factors that are mitigated due to the franchise setup. Yes, it is still risky but starting an entire business from scratch is a lot riskier. That's why you pay.
- projektfu 7y agoThe trouble is that the royalty adds to the risk. That, and you can't change suppliers if they start playing with you. Independent restaurants, if they hit their market, run into the same problem with landlords, who want to take the profit from exorbitant rents after the the lease expires.