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Isn’t a franchise owner basically renting the name brand and taking deliveries of goods from them? Easier to build a Wendys Mask No Days Off Peak 2020 Virus Corona Shirt customer base but your profit margins are lower because you pay royalties to HQ. Franchises are not cheaper to open than normal business, they’re just easier to start and run. Can you explain what you mean by more costly to run? One of the main benefits of the franchise model is that it makes small business ownership more financially accessible to people. To start a franchise you pay all the same things that you would pay to start a non-franchised business (lease, equipment, inventory, etc.) but you also need to pay the franchise fee.

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Franchisors have established shipping networks, equipment dealers, marketing departments, etc. As far as royalties, they’re tied to Wendys Mask No Days Off Peak 2020 Virus Corona Shirt revenue. Sure you have to pay that percentage, but that just means your business is doing well. Man, that guy seems like a franchise salesman. 17 years in the restaurant business. Some of what he said is true but the royalties leave your pocket no matter if you have a successful franchise or not. Royalties cut into your margins, you’re making the Corporation money, more than yourself. They wouldn’t sell you a franchise if the deal didn’t benefit them more. I don’t think the corporation needs to take a larger share than the franchisee for it to be worth the corporation’s time. They do, but do you know what also cuts into your margins? Lack of brand recognition.

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People are more likely to Wendys Mask No Days Off Peak 2020 Virus Corona Shirt buy a burger from McDonald’s or Burger King than a home-brewed Jacob’s Burgers. People also have terrible taste, Jacob’s Burgers probably has way better burgers. I see your point but burgers are a bad example because nearly everywhere makes better burgers than fast-food franchises. It is a more financially accessible way of opening a restaurant, yes, but once the restaurant is open you have to continue paying for the franchise rights, regularly order new signage, and push new menu items based on the company’s decree.

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