WikidFranchise

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 Leasehold improvements worth next to nothing Offered much less than market value of franchise Sunk Cost Fallacy: very hard to resist putting good money after bad Sunk costs: franchisee's trapped capital keeps them chained to treadmill

. You need to understand these: Opportunism 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

and ownership flip Trustee/consultant does mass terminations during protection to flip to new owner 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 Leasehold improvements worth next to nothing Offered much less than market value of franchise Sunk Cost Fallacy: very hard to resist putting good money after bad Sunk costs: franchisee's trapped capital keeps them chained to treadmill

Had high 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 the lease in their own

because: it is very hard to assess the expected returns (before you sign), capital and labor is hard to "get out" (sunk costs), and risks can increase very much, for many different reasons

are used to strip investor value during relationship, Raining litigation, Social media marketing, Sunk costs: franchisee's trapped capital keeps them chained to treadmill, United States, 20100909 Food trucks2

, Predatory franchise lending, Rebranding usually hides 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

to close. Brought to you by WikidFranchise.org Risks: Franchisee abandons their investment, Independence, Lease controlled by franchisor, Sunk costs: franchisee's trapped capital keeps them chained

than no disclosure, Negative publicity, Sunk costs, Whistleblowers, Vacuum of information favours dominant party, Undue influence, Trade association creed, Tobacco industry-type defence, Symbiotic

legal actions, Sunk costs: franchisee's trapped capital keeps them chained to treadmill, Canada, 20090413 Franchiser swallowing