Do You Think You Do Not Need Due Diligence When Buying a Franchise?
Opening up a new franchise location can cost upwards of $250,000. This is a lot of money for a business buyer to invest in a new unproven location.
New investigative reports are now stating that the selling of new franchise locations is where the real profit is earned by franchisors, rather then as previously believed on the 5% franchise fee paid from the sale of product. The franchise sales staff earn a large chunk of the $30,000 plus franchise fee charged. Plus the company makes a profit on the construction costs of the new store.
Many people have the idea that our government’s registration rules exist to protects the consumer from being cheated. In truth it has made the problem worse. Read more