[Publius Valerius]

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.

Others are wrong. There is no other way to put it. Underperforming franchises are a huge drain on a franchisor.

[DuncanWaring]

How is that? What’s the cash flow from the franchisor to the franchisee or other expense attributable to the relationship?