As I and other people have frequently pointed out, maintaining franchisees is not without expense. I’m honestly baffled that people think that maintaining a franchise network is a no cost proposition.
Others have pointed out that between the franchise fee and the requirement that marketing materials be purchased from the parent company, even a franchise that doesn’t sell a single car produces revenue to the parent company.
Sorry but you’re wrong . The burden is almost all on the franchisee. He pays for the cars, he pays his taxes, he pays for his real estate. He builds and maintains his showroom, shops and offices. He pays his employees salaries and benefits. We’re not talking about JC Penney’s here.