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Article: Franchises no longer provide safe harbor from risk. (Small Business Quarterly)
- Article from:
- Los Angeles Business Journal
- Article date:
- June 27, 1994
- Author:
CopyrightCOPYRIGHT 1994 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Conventional wisdom has always held that buying into a national franchise is one of the safest ways for someone to own a small business. Whether it's a fast-food restaurant or an auto tune-up shop, a franchise outlet could offer neophyte business owners cost-effective access to instant name recognition and the marketing clout of a major corporation.
The investment would be relatively risk-free, as the story goes, and perhaps the franchise could even be built into a family enterprise for generations to come.
But franchises' reputation for safety may no longer be deserved -- especially in Los Angeles -- according to new studies and several experts on ...