It's a very good article on franchising and I do commend it. It, the regular Corporation/ Company type and Network marketing constitute the three types of business systems.
Each has its own advantage but I am not sure whether this article has touched on the issue of real estate ownership and its transfer in case of a franchise.
The point is, in many of the contracts between the franchisers and franchisees, while the franchisee purchases the land on which the franchise comes up, th terms and conditions of the contract make it clear that it is the franchiser who would ultimately have the control over the piece of land where the store comes up.
Ray Croc the man behind McDonald's once told an MBA class in the US that real estate and not selling hamburgers was not his real business. That's why McDonald's today owns the maximum number of prime real estate in the world. [Please see Rich Dad, Poor Dad by Robert Kiyosaki]
Any petrol pump owner can tell you that the contract with the company be it Reliance etc. virtually hands over the owndership to the company.
Network Marketing is better & cheaper if it has a good trg. & leadership development programme.
