The So-Called Franchising Scam

The So-Called Franchising Scam is now a brilliant business concept. Although several decades ago, you may have heard an entirely different story.

“In most Americans’ minds, it’s a ‘scam’ and a ‘scheme’—questionable or unethical at best, immoral and illegal at worst.”  –John Milton fogg.

Over forty years ago, newspapers, magazines and television news and talk- shows regularly exposed franchising as a rip-off.  After all, the so-called franchising scam threatened traditional big business industrial age business practices and put the power in the hands of the little guy. Congress event tried to outlaw it.  Long before companies like Pizza hut and McDonalds established franchising as a legitimate industry, there was a lot of negative scuttlebutt hurled at the franchise business model.

The truth is, around 80 percent of all small business fail in their first year. 80 percent of those that make it don’t survive long enough to see year five. And even fewer will last another five. Franchising is a way for the small business entrepreneur to increase their odds for success with a systematic, proven business model. A franchise takes the guesswork and the inherent risks out of building a business from scratch. The franchise company creates a “turn-key opportunity” complete with products or services, marketing, training, vendors, policies, and procedures.

Virtually anyone with the desire and start-up capital can climb into the franchise vehicle, turn the key, and drive off down the highway of entrepreneurial success.

Here is a bit of history that may be of interest to you. Modern franchising came into prominence in the 1930s with fast-food restaurants, such as A&W Root Beer. The growth of fast-food restaurants and motel chains picked up steam in conjunction with the expanding US interstate highway system. Founded in 1955 the McDonald’s corporation was among the franchising pioneers. They stopped updating the number of burgers sold back in 1994 when it reached 99 billion.

Due to Ray Kroc’s vision for creating a simple business model and replicating systems, it’s estimated that McDonald’s is now serving at the time of this writing more than seventy-five burgers a second, or almost 300 million a year worldwide. Today there are thousands of brilliant business ideas. So much for the franchising scam.

If you’re interested in learning more, Click here to evaluate some excellent Franchise opportunities.  The best news is franchises are extremely affordable these days, and you won’t have to come up with millions to get started.