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restaurant types (fast food, chicken, pizza, family dining, etc.).
A benchmark rating of any franchisor's track record as a money-maker is its "turnkey" fee. That's how much a new investor typically must
http://www.wikidfranchise.org/20011018-psst-investor
on investment
Reparations
Return on investment
Success will happen if I work harder
Variable rate royalty fees
Withholding fees is extremely hazardous
Fear makes you lick the master's hand
Afraid to talk
http://www.wikidfranchise.org/the-marriage:divorce-court
franchise without cause.
Then there's the royalty: Franchisees must pay the company 8% of gross sales, the highest royalty in the food franchise industry. They also pay a 3.5% advertising fee (recently hiked
http://www.wikidfranchise.org/19980316-why-subway
coupons that, in Mr. Katzman’s view, bump up revenue and royalties at the expense of short-term profit. He also insisted on devising unauthorized menus for the clientele in his mostly Jewish
http://www.wikidfranchise.org/19980706-franchise-deals
get next to nothing
Unskilled and unaware bias (Dunning–Kruger effect)
Unsophisticated buyers
Uttering threatsUttering threats
Vacuum of information favours dominant party
Variable rate royalty fees
http://www.wikidfranchise.org/risks
gouging, Refusal to renew contract, Outright scam, Churning (serial reselling), Short- or forced-shipping, Success rate, Timothy Bates’ study, Variable rate royalty fees, Weak law worse than no law
http://www.wikidfranchise.org/20000306-john-sotos
the manufacturer’s return. Often, the franchisor collects an up-front franchise fee from new and renewed franchisees. Many franchisees pay ongoing royalties to the franchisor, normally based on gross revenues. 36
http://www.wikidfranchise.org/1990401-problematic-relations
- or forced-shipping
Tied contracting
Unilateral fines
Variable rate royalty fees
State
Anti-small business
Charade of public consultations
Competition rules a farce
Feet of clay
Freedom-of-information
http://www.wikidfranchise.org/20030121-information-sharing
contribution margin from franchise fees, royalties and advertising fund and secret value from: rent, sometimes grotesquely inflated products sales, kickbacks, listing fees, renovations, computer software
http://www.wikidfranchise.org/20050225-franchising-opportunism
, Criminal interest rates, Debt traps, Fee surprises at settlement time, Jealously guarded monopoly on the provision of legal services, Justice, Law grinds the poor, and rich men rule the law, Lawsuit
http://www.wikidfranchise.org/20110404-firms-denied