[tibbydudeza]

>> Restaurants operate on tiny margins

If you are a KFC/Burger King/McDonalds franchisee then it seems to work but I have lost count the number of establishments that open/closes in that one spot of our local mall.

Pub/Indian/Pizza/Chinese/Fish & Chips/ - they come and go.

[coredog64]

I would draw a further distinction. Some franchise operations (thinking Subway and Little Caesars) don’t really care if you make it: They get their money up front and you have to pay to get out.

McD is more strategic: They want a good business plan, location, etc. and are very picky at the cost of some false negatives.

[greedo]

They also require a huge amount of capital for new franchisees.