Pyramid Schemes and Financial FreedomPyramid schemes are fraud based on recruiting an increasing number of investors.............. A franchise can be no more than a glorified pyramid scheme. If you are familiar with multi level marketing (MLM) you will know what I mean. They both use terms such as "have financial freedom". They both will use phrases such as "sick of working for yourself", "be your own boss". These are hooks to get you in, but here is the reality. When you buy a franchise you are buying a job, you will work many, many hours for little or no money. Each day that you operate you make money for the franchisor, this is independent of whether you are making money, losing money or breaking even. In fact if you are successful you will make around 15% net profit for your work and the franchisor will make 40% net profit out of your hard work. FACT: You don't buy a franchise, truth is it is for a term, you are actually renting it for a period of time. All for the priveledge of making them money. The percentage of succesful ones is very low, over 80% fail.The harder you work, the more money you put into it, makes even more money for the franchisor. They benefit from all your hard work, they test the market with new ideas, with the money you pay them royalties with. Let's image there are 150 franchisees, if each pays $1,000 a month in royalties, the franchisor makes $150,000 a month! All because you get to use their signs and logo. You pay a marketing fee, which they can use to advertise to sell more franchises. They tell you to buy from their approved suppliers, so they get commission on everything you buy. You work, you spend, you buy, you invest, you work some more, you RISK - they benefit with zero risk. That is a pyramid scheme my friend and they are actually illegal. Franchise = Legalised P.S........ If you close, sell, go bankrupt, lose your house, your marriage , your potential income, your life - they still make the same money and they don't care. It is a heartless evil world. Essentially the financial freedom they speak of is non existant, they make money through the misery and hard work of others. They get commission or kickback for almost everything you buy for running your franchise, as you must buy from their "approved suppliers" these approved supplies, give the franchisor a cut whenever you buy stock. Franchsing = Using the smaller guys to line the pockets of the rich. Return Home from Pyramid Schemes |