Franchisees Pay a Premium to Buy Into Large Chains

McDonald’s (MCD) has more than 14,000 franchises in the U.S., while 7-Eleven has 7,800. Those are the types of businesses most people think of when they think about franchises, which helps explain why entrepreneurs buying into those chains pay a premium: The median costs for opening a franchise in the largest U.S. systems is more than double what franchisees can pay to invest in a smaller chain.

By Patrick Clark

Full Story: http://www.businessweek.com/articles/2014-11-05/franchising-franchisees-pay-a-premium-to-buy-into-large-chains#r=hpt-fs