How is it predatory? For $10k you get a complete Chick-fil-A restaurant, without having to pay for any of the building or start-up costs. Sure, that means corporate will take a much bigger cut of your sales/profits, but that seems fair, since they're taking on most of the risk. I mean... it's $10k. Tell me where else you can start a restaurant from scratch for only $10k and retain 50% of the profits? As someone who has invested in a (non-franchise) restaurant before, this is potentially pretty attractive, if you want to run a franchise.
Even for a more "traditional" franchise, where the franchisee is responsible for all the start-up costs, even $50k is small peanuts compared to the full cost to bring the restaurant up from scratch. Calling that "predatory" feels like a gross exaggeration.
Is it really predatory? For many owners of a Chick-Fil-A, the money is life-changing, and would take 3-5 other franchise restaurants to equal their level of income as a CFA operator.
A predatory option can be present with a choice to join it. People can choose to not take such a deal but those who did, they got the worse of the deal by large margins.
Even if they did choose that option, doesn't mean that deal was fair to them.
kelnos|6 years ago
Even for a more "traditional" franchise, where the franchisee is responsible for all the start-up costs, even $50k is small peanuts compared to the full cost to bring the restaurant up from scratch. Calling that "predatory" feels like a gross exaggeration.
indymike|6 years ago
giancarlostoro|6 years ago
aryamaan|6 years ago