Скачать или смотреть The 5-Year Wealth Test: Franchise vs Independent

Most comparisons between franchising and independent ownership are narrative. This video treats the decision as a capital allocation problem.

We model a five-year horizon and compare the net present value of two paths: opening a franchise versus launching an independent restaurant. We examine the cash-flow mechanics that drive outcomes—upfront investment, ramp speed, survival probability, and the ongoing claims embedded in the franchise model through royalties, marketing fees, technology requirements, and compliance-driven reinvestment.

We also analyze what projections often miss: control rights and exit constraints. A franchise is conditional participation in a governed system, which shapes resale value and limits option value. An independent business carries higher early variance but retains full upside and strategic flexibility if it stabilizes.

The central claim is structural: franchises tend to optimize for smoother median outcomes, while independent ownership preserves tail upside through retained margins, optionality, and equity value.

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This content is informational and educational and does not constitute legal, financial, or investment advice.

#Franchising #SmallBusiness #Entrepreneurship #NPV #BusinessAnalysis #InstitutionalEconomics #CashFlow #Ownership #RiskManagement #Restaurants #WealthBuilding #CorporateGovernance