Friday, July 6, 2007

"Another nonstandard form of employment held out to the unemployed is franchising, known to cynics as 'buying yourself a job' because the initial fee for the right to use the corporate franchisor's name is in the $15,000 to $40,000 range.In an earlier era, people were more likely to start their own business; today, you can buy any sort of prefab business, in which operating procedures, as well as any products used or sold are supplied, for a monthly 'royalty,' by the franchisor. About 400,000 Americans are franchisees, managing eight million employees and generatingone-third of U.S. gross domestic product- everything from doughnuts and burgers to fitness centers. But as in real estate, the rewards are uncertain and the prospects of failures dauntingly high. In his study of franchisees in a variety of industries sociologist Peter M. Birekeland found a survival rate of only about 25 percent andaverage franchisee incomes of about $30,000. "

This is what Barbara said.

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