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Sunk Costs: beg to get back 15%
Assets sold for fraction of cost or value
Credit note system
Designed to fail as franchise investment
Forced to invest in unproven concept
http://www.wikidfranchise.org/sunk-costs
Here's the math: Amy earned five bucks on the sale of a hundred bucks worth of stamps, and 12 per cent on the price of parcels although, if customers
http://www.wikidfranchise.org/20091104-mandatory-reno
"I've sold more hamburgers in the last few months than ever before, but the cost is prohibitive. It just makes no sense," Ogmundsson told Reuters. "For a kilo of
http://www.wikidfranchise.org/20091027-mcdonalds-to
Sunk Costs
People go into marriage full of hope.
However, some relationships are not made in heaven.
See the stories of 1,000s of former franchisees here:
The Courtship
The Engagement
http://www.wikidfranchise.org/the-marriage:introduction
sunk costs (debt-servicing needs) from paying a high franchise fee and had paid for an expensive fit out in a major shopping centre
Had many employees
Did not have
http://www.wikidfranchise.org/20060306-franchisees-struggle
sunk costs), and
ownership and control of assets is split (creating investor vulnerability).
For these reasons, total franchise risk is unscalable (ie. it is not "low" or "high" but unknowable
http://www.wikidfranchise.org/start
Sunk Costs: beg to get back 15%
Assets sold for fraction of cost or value
Credit note system
Designed to fail as franchise investment
Forced to invest in unproven concept
http://www.wikidfranchise.org/the-marriage:divorce-court
real objective, Renting a business causes problems down the road, Sold to dodge legal actions, Sunk costs: franchisee's trapped capital keeps them chained to treadmill, Canada, 20090507 MTY Food
http://www.wikidfranchise.org/20090507-mty-food
Sunk costs, Sue the professionals, Symbiotic relationships (industry, banks, lawyers), Sympathy for the franchisor, Thin-skinned politicians not doing their duty, Threats against franchisee advocates, Threats of lawsuits, Tip of the iceberg
http://www.wikidfranchise.org/20080113-green-acres-green-acres-victims-take-to-legal-actio
sunk costs involved in a franchise purchase. By contrast, counter-claims by franchisors for instance non-payment of royalties, tended to be less successful and amount to tens of thousands
http://www.wikidfranchise.org/20090615-franchises-and
