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by micmil 2344 days ago
There's nothing "predatory" about assuring that your business partner actually has enough capital to operate a business. The startup costs may be significantly lower for a freestanding restaurant but you also have to shoulder the burden of marketing and establishing a customer base. A national chain doesn't just sit on its ass and collect money from franchisees. The costs of marketing and R&D are enormous but in the franchise model these things are offloaded from the individual restaurant to the parent company.

The parent company has no interest in that location ever closing. They're not house flippers or day traders. They rely on stable long-term income, not random tiny spikes a few times a year. Franchise fees are barely even a blip on the radar of a company like McDonald's.