Would a franchisor exploit my desire to not be employed to promote a fraudulent opportunity?
Most of the costs, at least in my systems, are negotiated at the franchisor level.
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But Ledsinger looked at his company--then a 3, 039-unit franchisor of Quality Inns, Comfort Inns and other budget names--and decided to stay put.
Steven Hemsley, chief executive of the franchisor Domino's Pizza, told the BBC he was determined to get to the bottom of the deductions.
D. facts from any franchisor to show the odds of how successful a franchisee prospect can be over the term of ten years?
If a modest recovery continues in the U.S., top casual-dining chains stand to prosper and having two good brands is gold for a franchisor.
On top of paying royalties (of about 11% to 12% of sales) to the franchisor, franchisees often bear the brunt of a promotion's cost.
Franchisees who aren't deemed in good standing by the franchisor risk receiving less-favorable pricing for equipment and supplies, and missing out on expansion opportunities, he says.
Ken Gutman spent 22 years at Sign-A-Rama, a West Palm Beach, Fla. franchisor of business-sign shops, climbing from store manager to chief operating officer of the 1, 300-unit chain.
"It's up to the discretion of the franchisor, " says McElgunn.
And because Choice is a franchisor, there's precious little of its own cash going into all this: The company's 70% return on invested capital is several times that of Hilton and Marriott.
If franchisees refuse to participate when price promotions are mandatory as per their franchise agreement, they could lose their franchise or risk being sued by the franchisor for breach of contract, says Zarco.
Art Coley, Franchise Development VP, appointed to position after ethically challenged Privet Equity group purchases Franchisor, 30% of staff cut, 30% flee and 10-15% of those who remain do so with one foot out the door.
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Americans never learn of the fraud because franchisees are forced to sign exit strategy agreements which prevent them from discussing their franchise experience when the franchisor steps in to help them exit the way they want them to.
As a leading global payments company, MasterCard (NYSE: MA) serves as a franchisor, processor and advisor to the payments industry, and makes commerce happen by providing a critical economic link among financial institutions, governments, businesses, merchants and cardholders worldwide in more than 210 countries and territories.
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