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Yeah, I just don't understand how franchises are able to get away with their shitty tactics, at least in the EU. They do not provide any net value to the socie
by RicoElectrico 4y ago
Yeah, I just don't understand how franchises are able to get away with their shitty tactics, at least in the EU.
They do not provide any net value to the society, all they do is shift the risk onto the franchisee with a pretty much unilateral contract. You have to engage in whatever shit they come up with, like buying expensive equipment. (McDonald's pizza anyone?)
The only instances where a franchise makes sense is when a franchisee could realistically walk away from the contract and stay in the business somehow.
- ghaff 4y agoWhile Subway franchises specifically don't seem to be especially profitable, others aren't bad and a local businessman can own multiple. Overall, it's probably a safer bet--though possibly less non-financially rewarding--than going independent. https://www.eposnow.com/us/resources/how-much-do-franchise-owners-make/ https://www.eposnow.com/us/resources/how-much-do-franchise-o...
- HWR_14 4y agoA franchise makes good theoretical sense. The franchisee gets an operations manual and the ability to use valuable trademarks to streamline you business, and pays a percentage that is lower than what movie stars and athletes pay their agents. The customer gets knowing that McDonalds, which values their trademarks, is standing behind the restaurant with higher (or at least different) standards than the health department in terms of quality, and the menu and deals will be what they expect. The franchise parent company gets to expand without capital costs. Done properly, all three parties benefit.
- bombcar 4y agoI know of one franchisee that actually did walk away from a pizza franchise to their own when the franchise changed their sauce. He’s still doing well but it wasn’t a dominos kinda thing.