Go After That Which Has Teeth!!!!

I used to own a chain of retail franchises in the People's Republic of California. Aside from the reasons that caused me...and millions of others..... to sell (at a small profit) and take my business out of state (and especially before Governor Brown could raise the minimum wage by almost 2X), one of the first things I noticed was that in a franchise, you continue to pay franchise fees even when you're suffering losses. Now...that's a great model isn't it? You buy into the franchise....you bear all the risk...and the home office is virtually guaranteed a monthly income. You know that busy 7-11 you drive by on your way to work? It's probably illusory. Do you know why? Because the owner might be running a negative cashflow and have to either sell out or abandon the business, in which case the home office sells the store...the business to the next family from Bangladesh...and you the patron...driving by...would never know. After all....it's so busy isn't it?  That was one of the experiences that lead me to focus exclusively on real estate. So what's the attraction of retail franchises to the average American? It's sexy. What American doesn't want to stand in front of a brick-and-mortar business and thump his chest and say..."This is mine!". It's like owning a house. It has a lot to do with ego. But business is mostly about numbers and ego can be very expensive. Don't go after that which is sexy....go after that which has teeth.