We can t develop any other opportunities unless we sell our stores. When we sell our stores, few of us can command a price great enough to capitalize another business because of the small pool of potential buyers. However, taken as a whole, they form an almost perfect trap that puts all the financial power in the hands of the franchisor. Even though everything I describe above could be imagined after reading the UFOC, few honest business persons would have such an imagination. Franchisors have spent millions of dollars developing these elaborate traps.
Franchisees simply can t see the situation until they are stuck in it.
Even during the years of their first agreement, most franchisees think things are going great. The realization that they are trapped does not occur until they are forced to sign the renewal contract. Many franchisees are shocked to learn that the assets of their business are barely worth enough to pay off the liabilities. At least by signing the agreement they are able to keep their job. For many franchisees, the relationship amounts to indentured servitude.