Archive for the ‘Franchise News’ Category

I stumbled on an article on Yahoo! Small Business, that (again) put franchise ownership as one of 7 most overrated businesses.

Kelly K. Spors and Kevin Salwen, the article writers, have conversed with small business experts to identify the overrated businesses. Other than franchise ownership, the other six are: Restaurants, direct sales, online retail, high-end retail, independent consulting and traffic-driven websites.

The culprit that put franchise ownership on the list is, again, the franchise agreement. “…too many people don’t understand the risks associated with franchising and sign restrictive franchise agreements without thoroughly researching their franchisor and their contractual obligations.”

With all due respect – While small business experts can say whatever they want, but I don’t agree that franchise ownership is overrated.…

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I just read an article posted by Joel Libava (The Franchise King) about not including buying a franchise as a backup plan after someone is being downsized.

Unfortunately, I do heard stories of people who put buying a franchise in the top list of what-to-do-after-you-are-being-downsized – I agree with Joel: Franchising is not for everybody. How people are being misled? The culprit is the widespread belief that buying a franchise gives you a huge opportunity to succeed – The coveted 95% success rate.

In another article, Mr. Libava indicates that the 95% success rate of franchise ownership is a myth (and an urban legend), as there is no reputable source that could back the stat.…

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