Franchising Can’t Guarantee Success

WSJ:

Amid strong profits at franchising giants
such as Domino’s Pizza, Yum! Brands
and McDonald’s, buying a franchise may sound like an attractive way to go into business for yourself.

But be careful. A franchise is an investment, and like many complex investments, it merits a big ‘buyer beware’ sticker.

Buying the right to operate a business under a nationally recognized name can give you a leg up compared with starting a restaurant or other business from scratch. But start-up fees can be steep, ranging from under $50,000 to over $1 million. Later, advertising fees and royalties will cost about 8% … Log in.