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- Newsgroups: misc.consumers
- Path: sparky!uunet!cis.ohio-state.edu!zaphod.mps.ohio-state.edu!news.acns.nwu.edu!nucsrl!tellab5!chrz
- From: chrz@tellabs.com (Peter Chrzanowski)
- Subject: Re: Nope again (was Re: Yup, Amway's a scam)
- Message-ID: <1992Nov6.233628.27586@tellab5.tellabs.com>
- Sender: news@tellab5.tellabs.com (News)
- Nntp-Posting-Host: tellab3
- Organization: Tellabs, Inc.
- References: <adams.721000176@spssig> <Bx9L2q.93o@fc.sde.hp.com> <Bx9Mq3.HIC@taligent.com>
- Date: Fri, 6 Nov 1992 23:36:28 GMT
- Lines: 36
-
- In article <Bx9Mq3.HIC@taligent.com>, cep@taligent.com (Christophe Pettus) writes:
- > In article <Bx9L2q.93o@fc.sde.hp.com> fritz@fc.sde.hp.com (Gary Fritz) writes:
- > >Does that make Burger King responsible for each franchise?
- >
- > Absolutely. They use common advertising, a national identity, etc.
- > There is no way for the average consumer to tell that it is a franchise
- > and not owned directly by the identity corporation (many have both).
- > The parent should take as much responsibility for the franchise as for
- > one of its own operations, and many do.
-
- Most franchise owners are only semi-independent as they are bound by
- contract to the franchiser; should the franchisee violate the terms
- of this contract, the franchiser can revoke the privileges of the
- franchisee, such as the right to use trademarked names, symbols, etc.
-
- This is a non-trivial consequence to the franchisee as most franchisers
- charge a hefty up-front franchise fee.
-
- Franchises aren't always a good deal; they tend to be structured so that
- the franchiser makes money whether the franchisee is successful or not.
- Still, IMO they're easier to evaluate as a business proposition than
- MLMs because they're about selling (and perhaps also producing) goods
- and services rather than about getting others to get others to get
- others to get others to get ... others to sell.
-
- It's always seemed that anyone who was going to regularly buy an MLM's
- goods might just as well become a 'distributor' themselves -- but then
- who's left to be the 'leaves', the 'retail customers', on the distribution tree?
-
- Finally, while the products sold by some MLMs are good quality I've
- yet to see any that are a good value; they're just too expensive.
- According to Business Week magazine and other sources, a typical big
- discount chain store (e.g., Kmart, WalMart) has overhead in the area
- of 15 to 30 percent of sales. I don't see how an MLM can keep costs
- anywhere near that low.
-
-