541. Franchises

Generally speaking, you never want to buy a franchise. The real winners where franchises are concerned are the people who started and run  them. If you ever do set one up yourself, a clever way to do it is to give away the territories free of charge or for a nominal cost and then charge 10% of the gross in each region. This is equivalent to giving away the razor and charging for the blades. Make sure you hold the freehold of the property where each outlet is located (Mc Donalds do this) and charge the franchisee rent. Set your advertising spend at 9-14% of turnover (Specsavers).  Set total salary limits at 30 - 35% of turnover.

Register the name worldwide as the cost of doing this will be the cheapest legal fees you will have to pay.

Once you have your system up and running you can licence manufacturers to make product under your name. This will attract licence fees, of course. A good example of this is Weight Watchers, sweets, scales etc. Develop simple and effective financial control systems for the franchisees and maintain tight quality control.

534. Doubting ? Yes ?

Whenever you have a doubt about something, someone else alwais gains - Mark Mulvey.

421. Your Critical Faculties

Keep your critical faculties sharp. When you hear a report either favourable or unfavourable about a person, place or thing, do not simply accept it at face value. Find out the real agenda behind the report - where the person making it is coming from. To what extent are they likely to benefit from the actions you may take based on it ? Cui bono ? (Who benefits?)  Always favour disinterested reports over biased or coloured reports, the one by the person who has nothing to gain or lose by any actions you may take. Always react neutrally to reports so that others won't be afraid to give you bad news and so that they can't know from your reaction what your plans are. (None of their flamin' business.) ~Treat all nformants on a need to know basis.