4. Investing in Franchises

Most people at some point have a dream of owning their own business and being their own boss. They naturally assumed that owning a franchise is the easiest way to freedom and controlling their destiny. However, the truth is most franchises are not very successful, when you consider all of the costs, like hours worked, startup fees, ongoing franchise charges, forgone salary and benefits. The main problem with the franchise is that you have two partners, one is the government and one is the franchisor. When you adjust for the actual costs you are usually left with little or no profit, so think about it carefully before you invest in a franchise.