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What benefit is there for a smart/careful 3pp to use the GSL?
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<blockquote data-quote="Raven Crowking" data-source="post: 4372195" data-attributes="member: 18280"><p>Interestingly enough, I know a guy who's family opened a franchise resteraunt here in Canada. A lot of his complaints with the franchise revolved around the home company doing things like (for instance) making a deal with a T-Shirt company, and then forcing their franchises to buy X number of T-Shirts from that company (the main corporation getting a kickback from said T-Shirt company). Despite the fact that the T-Shirt prices were inflated far beyond what the going rate for such product might otherwise be.</p><p></p><p>The head office also demanded that the franchise buy ingredients from substandard suppliers for higher than average prices, again because the head office gained a profit in so doing. They demanded the right to install coin-operated machines on premises and to take any profit garnered by the same.</p><p></p><p>It isn't enough to consider the profit you can earn when making a business decision. You also need to consider the risks you take.</p><p></p><p>When you enter a franchise relationship, you never know what the head office is going to demand. Ultimately, your only bargaining chip against those demands is to take down the "Dunkin Donuts" sign and put up a "Happy Super Donuts" sign instead.</p><p></p><p>Of course, the GSL doesn't exactly allow that. It's pretty darn specific that if your store goes the GSL route, you don't get to go "Happy Super OGL" unless you also buy all new fixtures and a new storefront.</p><p></p><p>Good luck with that.</p><p></p><p></p><p>RC</p></blockquote><p></p>
[QUOTE="Raven Crowking, post: 4372195, member: 18280"] Interestingly enough, I know a guy who's family opened a franchise resteraunt here in Canada. A lot of his complaints with the franchise revolved around the home company doing things like (for instance) making a deal with a T-Shirt company, and then forcing their franchises to buy X number of T-Shirts from that company (the main corporation getting a kickback from said T-Shirt company). Despite the fact that the T-Shirt prices were inflated far beyond what the going rate for such product might otherwise be. The head office also demanded that the franchise buy ingredients from substandard suppliers for higher than average prices, again because the head office gained a profit in so doing. They demanded the right to install coin-operated machines on premises and to take any profit garnered by the same. It isn't enough to consider the profit you can earn when making a business decision. You also need to consider the risks you take. When you enter a franchise relationship, you never know what the head office is going to demand. Ultimately, your only bargaining chip against those demands is to take down the "Dunkin Donuts" sign and put up a "Happy Super Donuts" sign instead. Of course, the GSL doesn't exactly allow that. It's pretty darn specific that if your store goes the GSL route, you don't get to go "Happy Super OGL" unless you also buy all new fixtures and a new storefront. Good luck with that. RC [/QUOTE]
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What benefit is there for a smart/careful 3pp to use the GSL?
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