Arithmetic 101 for Prospective Franchisees


I. The Capitalism Game

A. Grocery Store Example

i. Rule No. 1. Knowledge is power

A. Franchise Example

i. Rule No. 2. Lack of knowledge makes you the screwee

II. The Franchise Game

A. General Observations

B. The Goal of the Franchise Game

i. Rule No. 3. Lack of knowledge can be cured

C. The – Royalty * Revenue & Expense * Profit – Relationship

D. Franchised Business = A Leased Business; A Franchise Is Not Entirely “Your” Business

i. Rule No. 4. Franchised Business = A Leased Business

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