Hi, I'm a former Business Lender and I've read MANY franchise circulars in my day. The question has to be... buy into a franchise or start my own from scratch? I have TWO small businesses of my own and of my own making. A franchise is great if you can afford to buy multiple locations and are willing to let control go to others. First, all franchises actually ARE businesses, so they make their income from your efforts. Usually... off the top. Second, they often have requirements like buying inventory from specific sources, which is like getting paid in company coins you can only use at the company-owned store and subject to their supply and price demand. Do franchises hold value? Not really. After 2007, many that cost $300,000 or more were being forced-sold for 90% less. When you consider that a business loan is typically secured by YOUR assets, that 90% haircut was someone's life savings. Second... why would a franchise appreciate? Anyone could buy one from the source and follow your same course. Being a start up today isn't as hard as it used to be. Places like your Chamber of Commerce and County Offices will guide you to resources like SCORE- who will help you write a Business Plan and the SBA- which offers government-sponsored​ financing. A blend of brick and mortar and online business planning are a winning combination. Let's also separate small business from franchise. A small business you buy from the owner isn't a franchise. Many terrific and well-run businesses are in the Maturity Arc of their life cycle. Do some proper diligence or use professionals to help you do it, renew the cyclical aspect of the business (New Owner) or just slip in unnoticed and continue business as usual. IT'S A FACT that the best time to start up is at the bottom of an economic cycle because as we recover, you grow, but what you learn during the low period is priceless. Good luck and no... network marketing is a scam. Services are generally too. We are enduring a period where drop shipping, imports and colluded services have destroyed what once was in America. That's a train headed off the cliff. Learn to make something or to sell what is made locally, it's a win win win for you and where you live. Shortcuts using paper and button pushing and false administration? Not a good idea.

For several of these businesses they are offering you nothing else but a "brand Name".  SAVE your money. You can start a business with much less money and grow your own business name! I own my own retail store, I started it with a $100 in 2005, now I have grown it to be worth $75,000 in 7 years.  I don't owe anyone any money as I have purchased my own products out of the sales that i have made on my existing product and kept rolling the money over.  Be SMART people, do not go into debt and grow your business at a nice even pace.  If you stick to it, you will get there!

Small businesses don't have the money to pay $15-$20/hr to mow lawns because nobody will pay that much to have their lawns mowed.  Maybe US workers need to understand that they don't need to smoke cigarettes, carry the newest cell phone, drive the biggest truck with the highest gas mileage, not use credit cards to make purchases they can't afford (like the newest video games) and make smarter choices when spending their money so that illegal labor wouldn't seem like a good option.  "Obbutwad" as you call him needs to start helping the people who help themselves and let the people to lazy to work for less than $15/hr. live in the streets. 

"I've started several small businesses over the years. Some have worked quite well. Others have not. However, I don't have to spend $100K to find out whether or not my business will succeed. If a franchise does not work, you will lose $100K. If my business idea does not work, I lose about $1,000"

AWESOME!!! I'm so glad you posted this. As a Business Lender I read a LOT of well-written business plans no one bothered to read themselves or follow. MILLIONS get lent based on the prospect of assets as security and the good intentions of the borrower. I started BOTH of my businesses at a hobby level to gather skills and deal with obstacles during a reasonable Risk level. Often the best find a way through those obstacles and grow knowing that others will need to encounter them to compete. It's called-- Free Enterprise. Inheriting your dad's giant business isn't the same thing. Getting hired-in at the top- isn't the same thing. Losing is learning and the mettle that success is forged from. Luckily, today we can blend street and virtual dynamics to see our businesses grow instead of fail (and lose too much). Readers need to realize that the franchise option starts as a turn-key venture and they pay dearly for it. A self-started venture is all you (or me) and we know it intimately. Great post, CBOT!

VOTE  well we do have a "CLUE" whats been instore for us in a past Obama Administration and it wasn't good at all!!!   Im sure a second chance will not be any better.  He can continue blaming it on everyone else or MAN-UP and take some responsibilities for his own actions, or in this case lack of action.  Our economy is nothing at all to brag about, maybe CRY ABOUT.    In fact it's the worst its ever been under his lack of experience.   If you started a business with your own hard earned money and hire Obama to be the CEO and he produced the same job preformance for your company as he did for our country, you'd FIRE him in a minute.  Funny when it's not your money, but the money of others, you don't seem to really care!   I guess it really does matter hiring someone with actually experience.   I doubt you'd hire a doctor to preform brian surgery on you that had no experience.  

Who in the world has that kind of money?

Probably one of the biggest employers of illegal aliens so this company would be anti-American.  I wouldn't invest one dime in this company!  Stay away from companies that hire illegal workers instead of American workers who need the jobs.

The problem with franchises are their capital structures.  Franchise businesses just like specialty retailers etc only put up 4/10ths of the required capital actually required for them to be an economic entity.  The remaining 6/10ths of the infrastructure capital required for them to be viable as an economic entity is always being born by someone else.  Even worse is the government programs put other peoples into the mix as well.  Thereby allowing businesses to be formed with only 2/10ths the actual capital charge being allocated to the party receiving the economic benefit.

Funny How I am a pig, because I dont want share my money or welth as it is, I have lost 2 business's several Great employees, home and property, I have to start all over again so I can be a PIG and employe some more great employees!

Wow! sound like I am a pig republican, triing to  help others while helping my self!  I am confused. 

I guess I should get in line with my hand out! for the Hand Out!

Oh! and vote for Noboma! 

Sorry! I just cant stop carring for others, my country and my family!