THE LIFE AND DEATH OF A FRANCHISEE–AS THE GAME OF MAKING ANY PROFIT FOR BEING AN OWNER IS NOTHING MORE THAN THE TRANSFER OF MONEY LIKE A WELFARE BY SOCIALISTS IN CHARGE OF GOVERNMENTS THAT LEGISLATES GREATER PAY FOR WORKERS RIGHTS WHILST MOST FRANCHISEE OWNERS BATTLE MAKING A LIVING AT ALL–AS THE TRUE PROFIT MAKING CORPORATE OWNERS REAPS THE FEES FROM USING THE NAME LIKE MCDONALDS, DOMINOS, 7-ELEVEN, BURGER KING TO NAME A FEW–AS PRIVATE OWNERS STAKE THEIR LIVELIHOOD AND FORTUNE BUT STILL GOES BELLY UP AND BANKRUPT IN THE PROCESS–WITH SMALL BUSINESSES FAILS OVER 40% OF THE TIME AFTER ONLY 4 YEARS–IT BECOMES A CRAP SHOOT WITH POLITICAL STACKED AGAINST THE BUSINESS OWNER

So when we hear that 7-Eleven franchisees have been caught out underpaying their workers and claiming they can’t afford to pay them properly, it’s a bit of a shock. Most of us think these franchise businesses are a licence to print money.

It turns out the franchise game is tough to win. Often the only people earning less than the kid behind the counter are the ones who bought the franchise.

The life of a franchisee is a life of fees. They pay the franchisor to buy the business, pay a share of takings, and often a lot of other charges.

The founders of Bakers Delight and Boost Juice make it onto the rich lists. Meanwhile many franchisees go bankrupt or end up fighting their franchisor in court.

Franchise disputes are so common the Australian Competition and Consumer Commission has a whole page set up to make sure franchising runs smoothly.

So why on Earth would anyone buy a franchise?

The answer is small businesses fail a lot. A lot.

http://www.news.com.au/finance/business/the-truth-about-running-a-franchise/story-fnu2q2e9-1227514066454