Arithmetic 101 for Prospective Franchisees

May 16, 2003 | Insights



By Mark H. Miller

TABLE OF CONTENTS

  1. The Capitalism Game
    1. Grocery Store Example
      Rule No. 1. Knowledge is power
    2. Franchise Example
      Rule No. 2. Lack of knowledge makes you the screwee
  2. The Franchise Game
    1. General Observations
    2. The Goal of the Franchise Game
      Rule No. 3. Lack of knowledge can be cured
    3. The – Royalty * Revenue & Expense * Profit – Relationship
    4. Franchised Business = A Leased Business; A Franchise Is Not Entirely “Your” Business
      Rule No. 4. Franchised Business = A Leased Business

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Mark H. Miller
Partner, San Antonio

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