A franchise takes a great part of the risk out of it. With an established franchise
like McDonald’s, your odds of success improve significantly, and a lot of
the groundwork is done for you. But you’re still stuck with problem No. 1: You have
to come up with the cash. The cost of purchasing one of the better-known franchises
can range from millions to millions and that’s just for the rights
to the franchise.
Then there are monthly payments to headquarters for training,
advertising, and support.
And even all this support is still no guarantee of great wealth. Many times a
person must continue to pay money to the franchisor or headquarters, even when his
or her personal franchise is losing money. Even if you are one of those who succeeds
at a franchise, chances are very good that you still won’t make any money yourself
for the first few years. And one in three franchises eventually go broke.
In short, a franchise is a great idea, but in reality, it’s a gamble and it’s a
gamble where you have to pony up a fortune just to sidle up to the table and play.
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