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Why franchising doesn’t add up

The real problem in the franchising sector is not that there have been some snake-oil salesmen in the industry over the years, it’s that retail franchise systems didn’t keep up with the maths. Franchising has a long history and in early times, it was a good way to expand a successful business concept, with a franchisee stumping up the capital cost of establishing a business in return for a proven brand concept, buying power and operational support. The package, arguably, did meet the franchi