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no say on new brand
Franchisor corporation created to fail
Franchisor insolvency, intentional
Head lease advantage
Immigrants as prey
Incompetent or predatory: for the small business investor, the outcome is the same
Material risks cannot be accurately determined before you sign
Mergers and acquisitions
Monopoly
Must buy only through franchisor (tied buying)
Must sell business (eventually) through franchisor
Opportunism: self-interest with deceit
Outright scam
Rent increase
Renting a business causes problems down the road
Sharecropping
Success or failure is within the direct control of the individual franchisee
System designed to fail for franchisees
System ownership changes very frequently
Tied contracting
Trap for the trusting
Unconscionable conduct
Unproven business model
Unsafe at any Brand?
War of attrition
Wealth is meant to be re-distributed (not created)
Wild West of the business world
http://www.wikidfranchise.org/the-top-30-business-risks-of-franchising
discovered cockroaches.
http://www.irishtimes.com/newspaper/finance/2009/0725/1224251305788.html
Brought to you by WikidFranchise.org
Risks: Extortion, Head lease advantage, Insolvency, Landlord
http://www.wikidfranchise.org/20090725-obriens-franchisees
dealings, Gouging on supplies, Head lease advantage, Independent businesses much higher profit than franchised ones, Independent businesses survive longer than franchised ones, Lease controlled by franchisor
http://www.wikidfranchise.org/20101129-optimism-improving
the minimum regulation they can get away with, Good faith, fair dealings, Gouging on supplies, Head lease advantage, Independent businesses much higher profit than franchised ones, Independent
http://www.wikidfranchise.org/20101010-wa-franchisees
, Franchisee gets cents, franchisor many $, Franchisor was once a franchisee, Head lease advantage, Infamous trademark system, Landlord accepts much less now or franchisor pushes franchisee and he gets
http://www.wikidfranchise.org/20090317-quiznos-to
://www.rte.ie/business/2009/0722/obriens.html
Brought to you by WikidFranchise.org
Risks: Extortion, Franchisor insolvency, intentional, Head lease advantage, Insolvency, Intentional franchisor
http://www.wikidfranchise.org/20090722-obriens-attracting
document is deficient, Disclosure document is so deficient it is ruled no disclosure, Franchisor's associate, Head lease advantage, Rescission, Canada, 20101123 Rescission under
http://www.wikidfranchise.org/20101123-rescission-under
diligence, Due diligence cannot predict or prevent post-sale franchisor opportunism losses, Due diligence cannot stop a predatory franchisor in the future, Gouging on supplies, Head lease advantage, Horror
http://www.wikidfranchise.org/20110125-a-franchise
created adequate investor returns, Deposit money not refunded, Excuse du jour, False earnings claims, Hates publicity, Head lease advantage, Lease controlled by franchisor, Lease margins
http://www.wikidfranchise.org/20100301-multiserv-cheated
to you by WikidFranchise.org
Risks: Franchisee revolt, Lease controlled by franchisor, Self-help: take your own store back, de-brand and run to fund a fight, Police involvement, Self-help, Head lease advantage, Evict instead of terminate, Declaration of war, Non-compete restrictions, Canada, 19990113 A declaration
http://www.wikidfranchise.org/19990113-a-declaration