The Grilled Cheese Truck Inc. (fka GRLD)

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The truth about franchising and how it affects GRLD stock.

[Professor] "Bates' Research Underscores Three Harsh Realities:

1.Many franchisees never make much money. Average profitability is poor, especially after taking into account the purchase price of the franchise. So take the hype used to sell franchises with a big pinch of salt!

2."Studies" used to sell franchises are paid for by the franchisors. Don't mistake the information provided for balanced consumer guide information. It's a carefully engineered sales pitch. Getting hold of the information you need to make a rational buying decision is difficult, to say the least. So use your common sense and a healthy dose of cynical discretion.

3.Franchise agreements always favor the franchisor. It is very easy to be swept away in the heat of the moment and get into a binding contract that is not in your best long term interests. And it is very hard to get out of a franchise agreement without taking a big financial loss. Remember, the main purpose of franchising is to make the franchisor wealthy. So be careful."

That full story can be found here:
http://www.moyak.com/papers/franchising-failures.html


Consider the above in deciding whether to invest in GRLD or in one of its franchises.