The idea of buying a job is an anti-capitalism concept that feeds the economic disaster the franchise business has / does perpetrate upon American Consumers. needlessly adding billions to thier retail purchasing cost.
Over 70 years, thae franchise price gouging business model, has been a primary reason about 1/2 of USA population is classified by the Federal Government as " low income Zip Code persons."
That unfair identification is then sold by the Federal Government to businesses that use the information to sell to various other businesses who help USA and other Nation companies to mainly target the other huge segment of the consumer population, roughly half of USA population, the Federal Government classifies as " high income consumers". What a deal, for alo except USA Customers, the backbone of our USA Consumer Economy.
The unique creative thinking on the part of some experienced business people has be used in a negative way is a good example of the history of the business concept of Franchising.
The public face of the Franchise Business is to provide a poor systematic pathway to small business owners to help them start a business.
Help ? The reality is, the franchise business model is to create Exclusive, Registered Trademark Commercial Retail Brands, that represents a line of products and / or services. The purpose of the franchise business model is to sell American Customers on the idea to pay through the nose for the right to sell the brands and work for the businesses that own the Brands.
By the late 1960's, American Businesses that were organized to sell franchise contracts, woke up to greater, vast profit potential after decades of earning huge profitable businesss operations, from the late 1940's by price gouging consumers, throurgh their dupes, the Franchisees.
The Business Model of the Franchise Business before the late 1960'a was to sell an ExclusvieAREA Sales Territory consisting of Counites of Contractual Authority within States.
The idea, was one that force Franchisee's to build multiple Brand Frachise Stores within the County of Authority.
The more stores the Franchisee built, and operated, the more income / profit the Franchisor earned.
The Franchise Price Gouging Business Model, worked so well, that the Franchise Business was / is one of the most profitable businesses in terms of historical success.
That Frachise Business Model has been one of the principal reasons from business history that has created the Business Asset Investment Acquisition Consolodations of American Real Estate Development business history. which has provided a strenghening of the retail and other segments of Amereican Businesses to unwisely, enter into long terms real estate owner properties which have been almost exclusively centered in Zip Code Locations, that are populated by - you guessed it - those American Customes the Fedral Government classifies as " high income population consumers".
As Franchisor Brands top exectuvies managed earnings of hundreds of millions of dollars, while they were watching their Francisee's reaping more, and faster business asset growth than they were, these Franchise Business Executives begain to study WHY ?
it didn't take long for them to wake up to the reason their Franchisee's were even more profitable and building financial assets faster than the Franchisor Brands from which came that fianicial success.
The answer was, Franchise Brand Executives realized they gave away the store to their Franchisee's by authorizing each one to develope multiple location retail stores within the Coutny / or Multi-County Authorized Exclusive Use Sales Territory.
Three unintented consequences resulted from the initial dumb idea to give high consumer population sales territories to Frachisee worker bees.
1. The Franchisee owned the Real Estate and Building all branded stores that they developed.
So, the increase of Asset Net Worth of the Franchisee, because of the exclusive brand rights within a huge consumer population sales territory was to the benefit of the Franchisee, not the Franchisor.
2. The Franchisee, becameIncome Adjusted due to their rapid increase of Net Worth, and personal income earnings.
As Multi-Area Frachise Contract owners grew older, during the 1930;s to late 1960's their rate of retail sales growthslowed.
They stopped developing new stores, with the result that the Franchisor then, could expect dimminishing future income from undeveloped consumer population " area " sales territories.
3. All of that, also created presssure upon the Franchise Brand Share of Market, becasue new Franchise Brands were entering the same large consumer sales territories of existing Franchise Brand's Retail Stores with the result that more price gouging by more franchise Brand retail stores, located within only about half of Zip Codes of consumers.
That consumer abuse helped to cause Franchise Brand Executives to study ways to narrow the Consumer Price Gouging for just their Frachise Brand.
Franchise Brand companies invented the ADDRESS LOCATION AUTHORICED SALES TERRITORY.
The retult - a windfall of profit, and a mountain of debt was experienced by Franchise Brand selling companies.
THE " NEW" FEDERAL TRADE COMMISSION regulated Frachise Sales Regulations, INCLUDED the sale of a " address locations frachise " that provided for only A LIMITED NUMBER OF CONSUMERS WITHIN THE AREA OF THE FRANCHIEE'S EXCLUSVIE BRAND ADVANTAGE.
AT THE SAME TIME, the new frachise contracts, INCREASED THE COSTS OF THE FRANCHIE, THE ADVERTISING FRANCHISE FEE, AND FORCING FRANCHISEE TO LEASE A TRIPLE A REAL ESTATE LOCATION / BUILDINGS THAT THE FRANCHISOR OWNED, INSTEAD OF ALLOWING THE FRACHISEE TO PURCHASE COMMERCIAL REALI ESTATE UPON WHICH TO BUILD THEIR OWN RETAIL FRACHISE BRAND BUILDING.
All of this was accomplished by QUESTIONABLE COOPERATIONI with Federal Agency Regulators, Washington D.C. Lobbyists, Legislators, Lawyers.
Together, the cabal, schemed to rewrite franchisor contracts, to force new, previously not agreed to terms of original franchise contracts so the Franchisor could force the excisting Franchisee Owners out of their more lucrative Franchise Contract, and burden them with a new limiting benefit Franchise Contract, if they chose to stay as a Franchisee.
All of this subtrifuge perpetrated upon the Franchisee was accomplished by Federal Agencies, Legislators, Lobbyists, and Franchise Brand company Lawyers, as part of the purposeful deception of Consumer Protection Legislation enacted in the early 1970's.
New regulations on the whole were sold to the American Consumer as more " Federal Regulation that also provided penalties as if the " regulations" were " laws".
The most important part of the new Consumer Protection Regulations that more closely regulated Frachise Sellers, were in large part for the benefit of Franchisor Brand Companies.
The new frachise regulations lawfully increased the Franchise Company sellers capacities of selling an increasing and more intrusive Federal Government Agency Standardize Frahchise Contract, no matter the BRAND, to eager, uninformed, person's motivated by wanting to cash in on the gold mine of owning a prized single, exclusive franchise brand location store ?