Unformatted text preview: dea. The Little Caesars franchise fee was $15,000, almost all the money he had left in the bank. devotion to a new faith
BECOMING A FRANCHISEE IS an odd combination of starting your own business and going to work for someone else. At the heart of a franchise agreement is the desire by two parties to make money while avoiding risk. The franchisor wants to expand an existing company without
spending its own funds. The franchisee wants to start his or her own business without going it alone and risking everything on a new idea.
One provides a brand name, a business plan, expertise, access to equipment and supplies. The other puts up the money and does the work.
The relationship has its built-in tensions. The franchisor gives up some control by not wholly owning each operation; the franchisee sacrifices
a great deal of independence by having to obey the company’s rules. Everyone’s happy when the profits are rolling in, but when things go
wrong the arrangement often degenerates into a mismatched battle...
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- Spring '08