Franchise City Rumble

MAACO is the iconic franchise most people think of first for bodywork repair. But is there a dark side to the franchise that includes Shoddy work, not honoring warranties, and lawsuits including allegations of fraud, misrepresentation and a lot more? We'll take a look at the MAACO franchise today on Franchise City. A MAACO franchise will cost between $276,000 to $1,015,500 breakdown of costs on your screen. You will pay MAACO a 9% royalty on your gross sales and $1000 a week every week for advertising. Many franchise owners claim its hard to turn a profit with all the fees including this owner that claims he was pressured into buying the franchise and needs to make $14k a week just to breakeven. More on that in a minute MAACO isnt well known for quality of work with an "F" rating with the BBB, 66 Unresolved complaints on complaints board, Majority 1 star on consumer affairs, and 54% 1 star on Trustpilot. Many of the complaints are for MAACO doing bad work and not honoring warranties like this customer who had to return three times and was then given rude attitude by MAACO employees. Or this news story about a customer who paid over $3000 only for his classic Cadillac to start bubbling shortly after. MAACO told him their warranty doesn't cover bubbles its only valid if the paint peels off. By then the warranty will probably be expired. Thousands of comments below this video suggested it was the customers fault for choosing MAACO in the first place. So MAACO service quality seems to be perceived as low. But what about the MAACO franchise opportunity? We took a look at multiple sources including MAACO'S own franchise disclosure and were surprised by what we found. There are pages and pages of lawsuits to be found on Justia involving both MAACO suing their franchisees and franchisees suing MAACO. Remember if you buy a franchise and go bankrupt, in many cases through the liquidated damages clause you could still owe $100,000 or more, and many franchises not just MAACO can sue you for that money. Recent lawsuits like this one indicate MAACO will pursue you in court even if you abandon your MAACO center because you are losing money. This franchisee sued MAACO alleging common law fraud, and deceptive business practices and was awarded $150k. This franchisee sued for not receiving the support MAACO had promised, including site selection support. This is important so hang in there. MAACO countersued, and remember the MAACO parent company has billions of dollars and expensive lawyers so its tough to ever win but this case was settled for $675,000 in the franchisees favor. Regarding site selection, this is when the franchisor helps the franchisee find a suitable location. Right now MAACO has about 400 stores in their system. But when I checked their FDD they have 172 stores not open. Almost half the system is people who paid the franchise fee and are waiting to open a location. Keep in mind that you sign the agreement it states if you dont open your location within 9 months MAACO can terminate the agreement or extend it for another 9 months at their discretion. But if you cant find a location you get your 10's of thousands in initial fees back right? No MAACO keeps it all. You wont hear existing franchisees complaining very often as MAACO requests you sign a non disclosure agreement that can result in you getting sued, and as we noted these corporations have deep pockets. . This franchise owner suggests everyone he went to training had gone out of business. This person says the same thing and that 11 of his training partners ended up bankrupt, broke or weren't even able to open. This franchisee declared bankruptcy despite grossing over 1m a year and claims to have seen other franchisees lose their homes, retirements and everything they owned to MAACO. This commenter references the churn and burn mentality of MAACO just reselling failed stores to new unsuspecting franchisees to cover up the fact MAACO stores are seemingly not doing well. There are many, many more comments from ex and current franchise owners that often represent peoples life savings and retirements. I dug a little deeper and this next number is crazy. Most buyers don't have access to this information but we keep it all on file here at Franchise City. I checked the MAACO disclosure documents from 13 years ago and in 2010 MAACO had 442 stores operating. Today after 13 years of selling hundreds of franchises to the public MAACO has only 398 stores open. Just in the last 3 years even after churning stores and selling stores MAACO showed a net closure of 61 stores. https://www.franchise.city/our-services YOU NEED TO CALL FRANCHISE CITY! https://youtu.be/74xJ-hSERjA How Franchise Scams Work https://www.youtube.com/watch?v=inOng9on__w News story noted in video #franchisecity

Can you make "Passive Income" from YouTube? No. It's also a nightmare from which you will never recover, a sucker of time, a usurper of money, and a frustration beyond chronic armpit fleas.

Are there any franchises under $10K that actually make money? Allow us to crush your dreams (probably save you $10k!) and reveal why so many people lose their money in this segment. Shame on the media for creating endless articles on all of these "great" franchise opportunities for under $10k. Articles like this one from CNBC "These 10 low cost franchises can make you rich" They focus on the 10K segment for clicks. More people read "under $10K" franchise articles because more people have $10k than have $100k or more. Note first that these articles are never written by franchise experts but by journalists, and where do they get their information? From the internet, where most of the information is completely wrong or paid for. Even massive industry lists like the Franchise 500 are put together by people with zero franchise experience. We covered that before on the channel. So people surf the web, see "Hey CNBC is a legitimate outlet and they say we can get rich. Marge, we have $10k maybe we should look at a franchise" And many if not most, lose their money. Some of you may be asking "If there are thousands of people each year who lose their money to a franchise why dont we hear about it"? People would leave bad reviews online, right? See this? This is an FDD, or franchise disclosure document. By law anyone who is selling a franchise must give you one of these, this is an older one many companies do electronic today. Point being these are often hundreds of pages long, in fine print, even if you read the whole thing you could miss one tiny sentence because you dont know where to look, and most people investing only $10k dont have the $2k to hire a lawyer to look it over. But here is why you never hear about people who lost their money or want to complain. In fine print hidden in the text of one FDD "Should franchisee divulge the terms of this amendment to any third party other than spouse, tax advisor or attorney, franchisee agrees to pay liquidated damages equal to the franchise fee" One paragraph, hidden in thousands of paragraphs that most people dont read. Buyers get so pumped up by the company sales person telling you about the few people that did make money, and they seem so nice, they just sign the agreement without reading the disclosure. Many franchise agreements have liquidated damages clauses that can put you on the hook for more money even after your franchise closes, even if it isnt your fault and their business model stinks. Most franchise agreements have some kind of a non-disclosure order that can hold you financially liable if you reveal anything about your relationship. And thats why you rarely hear from people who get ripped off. Sometimes people who are bankrupt just dont care anymore and do decide to whistleblow, but remember most of the media makes money from franchises so exposure is throttled. We've interviewed people on the channel who have lost a lot more than $10K, like Sherrance Henderson who lost millions toa franchise, or Marcos Enruiquez, who lost over $100k Euros to a franchise. This is a huge problem even with franchises costing more than 10K, but because the media is often tied to the billion dollar franchising industry, you never hear about it. Now that's even if they have an FDD. Many don't and will tell you they don't need one. If a company calls itself a franchise, or is a franchise model, by law they must register an FDD, If they didnt they are illegally selling franchises, many companies do this, that's another story altogether, but basically steer clear of any company that illegally sells franchises. But why do these $10,000 and under franchises fail at such a high rate? Consider a franchise with a $50,000 franchise fee. A good franchise will allocate more of that money towards franchisee support. Good franchises will have multiple employees dedicated to your success, so always ask how many employees are available to help you if you invest. Also in most cases what these businesses have realized it is much easier to package and sell their service as a business than it is to sell the service itself. You see the same situation with these internet marketing gurus. When selling on Amazon made a ton of money nobody sold a course. Once selling on Amazon became really competitive you saw dozens of gurus now selling you the "secret" to success. SORRY OUT OF ROOM FOR TEXT! PLEASE SEE VIDEO FOR END. Marcos lost $100K to a franchise https://youtu.be/qLzMGuDXGww Sherrance lost millions to a franchise https://youtu.be/0TzuTYbJIsQ The Truth of the Franchise 500 List https://youtu.be/4iBOusezuLw @FranchiseCityOnline

Talented sales professionals have many great franchise opportunities available to them. We discuss "Master" cleaning franchises with earnings over 6 million, consulting franchises with a low investment that have created millionaires, and much more. Forget McDonalds, forget fast food, these franchises while they can be profitable waste your sales talents. And they cost millions to open. Beyond fast food there are great franchise companies that have sales as their primary business driver, and they often cost a fraction of what these major food companies cost. why is franchising such a perfect fit for sales professionals? Sales people are great at sales, but everything else like logo design, logistics, marketing, hiring, bookkeeping, not so much. A franchise provides owners with a road map, support, training and a peer group of often hundreds of other franchise owners, that show you exactly what to do to be successful. And they know what to do already as the business has been proven by hundreds of other franchise owners before you. So you basically are handed a road map for success, all you need to do is add your own sales and business building motivation. There are two main types of sales driven franchises. A "one person army" franchise where you work from home with a very flexible, lifestyle friendly schedule, or more complex business models with an office, employees and staff, more infrastructure. Both can create million dollar revenues, so we'll start with a very profitable franchise niche in the "one person army" category. 1. Consulting franchises. There are multiple options in this space, remember the company trains you on the core consulting you will be doing so prior industry experience is not mandatory, it is your B2B sales and relationship building skills that they are looking for. This type of franchise is all about relationship building and local networking, and building a local book of business. If you have existing accounts already you'll be ahead of the game. Investment for these types of franchises ranges between $50,0000 and $100,000 and one company in the space shows a top earner generating over $2,699,897 with an average across the board of $267k. We saw one franchise owner recently sell their franchise for 1.7 million. Keep in mind your overhead and expenses are very low with these types of franchises as you are in a home office. 2. If you prefer running a business with more infrastructure you might consider cleaning franchises that are sales based and can generate over 1 million a year. The owners role actually has very little to do with cleaning, your role is to build the business and you are hiring the cleaners. So where is the sales? With residential cleaning, you or your rep visit prospects homes and provide estimates, which is obviously very relational, creating rapport, establishing credibility, and selling your service. Some home cleaning franchises generate an average of 1.4 million a year, many locations even more. Investment ranges from $60k to $180k. Another very little-known segment, commercial cleaning "master franchises" are almost entirely sales driven, as the owner secures commercial cleaning contracts, then sells those contracts to individuals seeking a side business. Owners sell individual contracts from $1,000-$10,000 or more so if you sell a few contracts a week this can be very profitable. Top franchisees in the cleaning master franchise world generate between 6-7 million a year. Total investment for a master franchise is a bit higher at 160-300k 3. Senior care. Huge growth industry right now and we have covered this previously on the channel. Just like cleaning these companies don't want people with home care or nursing experience, you are going to be hiring the caregivers, they want relationship builders and sales experts as you are often meeting with families and building local referral bases with care homes or organizations. Just like a cleaning franchise you are also building a recurring revenue stream, every year you add more customers and retain a percentage from the prior year. This is something you don't see in all industries. Recurring revenue is so powerful some senior care franchises show average revenue of 1.8m a year, and one top producer showed an incredible $55m in a single year. Keep in mind these businesses can take time to ramp up so you should have enough capital to keep you afloat until you reach profitability. Investment for a senior care franchise ranging from $70k-$200k 4. Staffing franchises are a very sales driven business, all about developing local B2B relationships. Some can be operated from home, most from a small office and having a few employees. Average gross revenue in one system was 6.4 million a year last year with many mature offices doing more than that. Investment ranges between $120-$160k. SORRY OUT OF SPACE! SEE VID FOR MORE Need help finding the best franchise? https://www.franchise.city/our-services #franchisecity

Operating franchises for sale in USA for Sept 2023. We have thousands more! Contact us: https://www.franchise.city/our-services Inquire on a resale: https://www.franchise.city/franchise-inquiry CITIES QUALIFY FOR 40K DISCOUNT ON STAFFING FRANCHISE Akron, OH (East) Albuquerque, NM (East) Anderson, SC Augusta, ME Burlington, VT College Park, MD Columbus, GA Danville/Martinsville, VA Delaware, OH Dover, NH Erie, PA Flagstaff, AZ Florence, AL Fort Washington, PA Frederick, MD Gadsden, AL Hempstead, NY Houston (East), TX Lake Charles, LA Lakewood, CA Laredo, TX Lynchburg, VA Meridian, MS Midlothian, VA Milpitas, CA Nassau County, NY (SE) New London, CT Paducah, KY Palm Springs, CA Plymouth, MA Portland, ME Providence, RI (North) San Angelo, TX Santa Clara, CA Stafford, VA Stamford, CT Statesboro, GA Timonium, MD Tucson, AZ (North) Twin Falls, ID

What are the best franchises in 2023? These little-known franchise industries can generate millions with low initial investments! Today on Franchise City. We'll start with a real world example of somebody's "best franchise" and how they turned a small investment into multi millions, and are selling their franchise today for 5.2 million, its available on our website more details in a moment for those interested. After that I'll show you the little-known low cost franchise industries that are booming in 2023, and we'll look at how much money you can actually expect to generate as a franchise owner. We'll wrap up explaining why most buyers fail and end up buying a low revenue franchise. We just listed a few new resale franchises for sale on our website, and did a video, link above and at the end. One listing is a great example of franchising making millionaires. This franchisee bought a franchise in home improvement for around $150K. At that range you probably need around $40-$50k down, finance the rest. They worked hard for a few years, built the business, built a strong 6 figure income while they ran it and today, they are selling the business for 5.2 million dollars. With around $50k down and good credit anyone can get into a low cost service based franchise, work hard for a few years building the business and exit a multi-millionaire. Now we can't publicly mention the name of the business but it is a service based brand in the home improvement sector generating 6.9m in gross, is located in Columbus Ohio, so if you are looking to step in and take over a very successful franchise give us a call. Now most people don't have 5 million lying around to acquire a business what can they do? McDonalds, Taco Bell, Burger King, all these brands cost over a million to buy. Service based franchises like the one we mentioned can be the best franchise for buyers on a budget. "Service based" franchises cost much less as they are generally operated from a small office, sometime a home office and many can generate millions of dollars a year. 10,000 boomers turn 65 every day and are starting to need help around the house. Senior care franchises hire mobile caregivers to attend to these seniors in their homes and help with basic tasks. Due to the low investment, typically in the $100k-$200k range, projected growth of the industry, recession resilience, and potential earnings we put senior care as one of the best franchise options for 2023. If you watch the channel we covered one senior care franchise owner grossing over 55 million a year. In context the top earning McDonalds does around 10 million a year. Fires, floods, mold, hurricanes are not going away and Disaster recovery franchises help homeowners recover. Investment from $60-$200k franchise owners hire and manage crews of experts who help people get their homes or business in order after a disaster. Industry is completely recession proof, you mostly deal with insurance companies so getting paid is easy, weather is becoming more extreme and demand is up, some brands demonstrate a top net yearly income of over $800k Looks like we may be headed for a recession, interest rates are increasing which means people hold on to their cars longer. Automotive type franchises are a bit higher investment in the $300k range, but there are mobile options as well starting in the $60k range. In most cases owners don't need to be an experienced mechanic as you hire and manage your staff. Recession resilient, much lower cost than fast food, increasing market demand, and some brands average over $400k EBITDA for top 50% of their stores. Guess what else people need in a recession no matter how bad the economy gets? Appliance, electrical and plumbing repair. Again, these can be started from a small warehouse or home office so a lower investment starting under $100k, you manage crews who go out in vans and help homeowners fix their electrical, plumbing or appliance related problems. Again, a need not a want so recession proof, when money tightens people stay in homes longer and often choose to fix rather than replace. DISCLAIMER: Please remember there are many unique variables involved when you make your decision like your local market, demographics, competition, your own skills and operational preferences so take these examples as a general guide, and never trust those general franchise "top lists" we covered why on the channel before. HOW OUR SERVICE WORKS: https://www.franchise.city/our-services DON'T TRUST "BEST FRANCHISE" LISTS!: https://youtu.be/4iBOusezuLw RESALE FRANCHISES SEPT 2023:

To receive the $2,750 rebate and request details for Assisting Hands Home Care Franchise: https://www.franchise.city/assisting-hands-home-care Details on our services: https://www.franchise.city/our-services How our rebates work https://youtu.be/K9k-mJJ1bNw Interview with senior care franchise owners Shawna and Tyler Field, and Dan Durney Director of Franchise Development for Assisting Hands Home Care. Curious about what an "Area developer" franchise model is? Stay tuned. 1:00 - 2:00 Intro - Assisting Hands Home Care and Area Developers 2:03 - 2:39 Introduction to Dan Durney Director of Franchise Development for Assisting Hands Home Care and Area Representatives for North Florida Shawna and Tyler Field 2:40 - 4:34 About Assisting Hands Home Care and Dan's transition from IT to senior care. 4:45 - 7:58 Shawna and Tyler Field - How did You Leave Corporate and Transition into Franchising? 8:00 - 10:55 Different Models in Franchising (Area Developer, Master Franchise, Single Unit etc) 11:00 -13:00 How do the Franchise Models Work with Assisting Hands 13:30 -14:58 Who Makes a Good Area Developer for Assisting hands? 15:00 -16:58 Values and Goals of the Assisting Hands Franchise System, do You Need Experience? 17:00 -20:30 What is the Franchise Operational Model? Day to Day Operations 20:35- 22:11 Why is Senior Care a Good Industry? 22:27 -25:20 What Separates Assisting Hands Franchise from Others? 25:30 -27:00 What is FOFO and FEAR how does it Help Franchisees? 27:20 -30:30 What is the Role/Benefits of an Area Developer vs Single Unit Franchise Operator? 30:40 -34:08 What do You Enjoy Most About the Senior Care Industry? 34:10 -35:45 To What do You Attribute the Success of Your Senior Care Franchise 35:50 -38:46 Future Outlook for Home Care 38:46 - end Wrap-up #franchisecity

Link to receive the $3,000 rebate and details on Ace Handyman Franchise: https://www.franchise.city/ace-handyman-services Information on our services: https://www.franchise.city/our-services How our rebates work https://youtu.be/K9k-mJJ1bNw Colette Bell from Ace Handyman services franchise speaks with Pamela Currie of Franchise City. If you have been considering a franchise opportunity that is a household name, is service based with a much lower investment than retail, recession resistant and lucrative, stay tuned to learn about the benefits of a handyman franchise, and market differentiators of Ace Handyman Services. #franchisecity

Subway Franchise was just purchased #subway #franchisecity

Is there a less expensive way for foreign nationals to move to Canada through investment? Yes, via the International Mobility Program Code C11. Franchise businesses do qualify and can provide benefits over a start-up business. We'll cover that today on Franchise City We previously covered the PNP, the Canadian "Provincial Nomination Program", which is proven way to move to Canada, however can be quite expensive costing hundreds of thousands of dollars. Today we look at the C11 Entrepreneur work permit that allows non residents to live and work in Canada without the need to apply for an LMIA. This is great news as historically the Labor Market Impact Assessment has been challenging to obtain, and often ended in refusal. For this reason two thirds of all work permits today are attained via the "IMP" International Mobility Program Code C11 The C11 program is actually a work permit, however the applicant can choose to work in their own business. This allows for the applicant to start or buy a business and the investment amount is significantly less than the PNP. If approved the applicant and their family including children under 22 years of age can stay in Canada. It should be noted the C11 program on its own does not lead to permanent residency, it is a temporary permit, however it can lead to permanent residence if the applicant initiates a few extra steps. The basic progression looks something like this: 1. Start or Buy a Business 2. Create Business Plan 3. Execute the Business Plan 4. Apply for C11 Work Permit 5. Obtain C11 Approval 6. Operate Business for 12 Months 7. Apply for Permanent Residence Who can apply: - Want to be self-employed or operate a business in Canada - You must own at least 50% of the business - Present a viable business plan - Must have sufficient funds to operate business in Canada. While there is no set amount we suggest at least an $150k investment. There is also a social and cultural eligibility if you are a musicians authors or sportsperson that requires a lower investment of around $50k, however we will be exploring the economic route today. And finally and most importantly, the business must demonstrate economic benefits to Canadians. Economic benefit can be shown in a number of ways, the easiest is by hiring Canadians to work in your business. Note, businesses that only benefit you personally, such as an AirBnb, or real estate investment, are not good choices as you are the only one benefiting from the business. Ideally you should be hiring Canadians to work in your Business. Benefits of Investing in a Franchise for your C11 application. 1. A franchise business has a proven operational model and provides ongoing training and support on how to best operate the business. For anyone new to the country not overly familiar with the business landscape this is a tremendous advantage 2. A Nationally recognized franchise brand is likely to be perceived more favorably by officials over an unknown business plan. 3. Acceptable investment levels may be lower with a well known franchise vs a start up business. 4. By investing in a franchise you have the ability to immediately provide immigration officials with much of the required paperwork such as historical business plans, forecasts and operational manuals. 4. An established franchise can have a higher overall chance of success than a startup business. This isn't always the case so buyers should be careful which franchise they buy. Depending on your budget many good options exist in many industries. If your budget is lower we generally suggest service based businesses. These are business that can operate from a small office rather than requiring an expensive storefront retail location. A McDonalds for example will cost over 1 million dollars not including real estate, while a service based franchise can be started in the $100k range and often employs many workers. Some industries that are service based include. Senior Care. The owner hires and trains caregivers who attend to seniors in their homes. Also renovation, construction or Home Décor. Again, owners are hiring and managing crews of workers who perform the service. Cleaning. While not a sexy business it can be quite profitable If you have a slightly higher budget some retail options exist that can be good options for the C11 such as Automotive Services, Fitness centers, Personal Services like hair cutting, massage and esthetics. Your investment for these types of businesses depending on your location would start at around $200k, still quite a bit less than the PNP. Our consultants ca help you determine which franchise would be best for your situation. Our service is provided free to buyers, just like working with a real estate agent, as we are paid by the sellers. If you have not yet engaged an immigration lawyer we can help you with a referral. https://www.franchise.city/C11-PROGRAM-CANADA #franchisecity

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Will Chick-fil-A be the latest casualty in the war against woke? What exactly did Chick-Fil-A say to bring on calls for a boycott? Bud Light lost billions after its DM campaign. Target lost billions after it's rainbow clothing line. Chick-Fil-A recently has been under fire for going "woke" and calls for a boycott have been circulating the internet. Bud what did Chick-fil-A actually say and do they deserve a boycott? Chick-fil-A actually started the DEI (Diversity, Equity and Inclusion) program years ago. For some reason people are just picking up on it now. The argument used against these companies is they should not force their ideologies on people and should just sell products, leaving their beliefs out of it. The first thing you see on their DEI page is: Chick-fil-A’s Corporate Purpose is “To glorify God by being a faithful steward of all that is entrusted to us. To have a positive influence on all who come into contact with Chick-fil-A." So lets at least start with honesty. If the corporate ideology being pushed is one we support then it is good, if it is one we dislike then it is propaganda. So depending if you are left or right, religious or atheist, this statement may be annoying or validating. Next on their DEI page is a quote by Erick McReynolds speaking about respect understanding and dignity. Pretty benign so far but wait. Next up some stuff on togetherness. When we combine our unique backgrounds and experiences with a culture of belonging, we can discover new ways to strengthen the quality of care we deliver: to customers, to the communities we serve and to the world. They do that by ensuring equal access, valuing differences, and a culture of belonging. Then we have recruiting top tier talent from places like Women’s Foodservice Forum, National Black MBA Association and Association of Latino Professionals of America. Next is access to education. They have invested $112m in scholarships. Then community groups that are available to staff like Women in Business (WIB), Black Employee Resource Group (BERG), Young Professionals, and the Chick-fil-A Green Team. Elevating organizations in the community by supporting nonprofits. Fighting hunger - they give 25k for every restaurant opened in the local community to fight hunger. Their "Shared Table" program packs up surplus food to help local groups feed the hungry. Helping nonprofits scale their impact, a bit about their franchised operators and how they have created their own communities. Team members, and how they employ a diverse group. Corporate staff and again how they hire diverse talent. Rankings in best places to work and Commitment to EEO, Non-Harassment, and Diversity, Equity and Inclusion, frequently asked questions and that is the end of the DEI page. So no rainbows just yet, which is either bad or good depending on your team, and overall Chick-fil-A at least comparatively seems to still be pretty conservative overall in their approach to their DEI program. And now you have the exact information from the Chick-fil-A page page you can make an informed decision on whether or not they deserve a boycott! @FranchiseCityOnline

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How Much a Sonic Franchise Costs and Earns in 2023?

Sorry had to cut the 5th reason to stay under 1 minute :-)

Chick-Fil-A Franchise Cost and Earnings in 2023 @FranchiseCityOnline

McDonald's 2023 Franchise Cost and Earnings #franchisecity

Gresham's Law means quite simply "bad money drives out good". Most people don't know that dozens of countries Fiat currencies have crashed, collapsed or hyperinflated over the years and all seem to have a limited lifespan before eventually collapsing. Many people think that money, as we know it, this paper stuff is somehow tied to something that has value. Like Gold. And that paper money is just a contract of the gold that exists somewhere. Absolutely not true. In fact the USA completely abandoned the "Gold Standard" as it is called back in 1971. So the value of money is whatever you think it is worth. There are many examples when citizens lost confidence in money to the point of literally needing a wheelbarrow of currency to buy a loaf of bread. Germany hyperinflation was certainly bad at 29,500% but the top winner for inflation was Hungary with a 41.9,000,000,000,000,000,000% inflation rate back in 1946 with prices literally doubling every 15 hours. Way back in 1933 President Hoover said "We have gold because we can't trust governments" - Gold as a standard acts as a limiting mechanism that prevents governments from just printing money, which is basically what the US Government is doing endlessly with quantitative easing. And what other countries have done with disastrous consequences. Yes, we have the world's reserve currency that shores up the US dollar but there have been multiple global reserve currencies throughout history. All had limited lifespans and eventually died. Sir Thomas Gresham was an English financier back in the mid 1500's. He made the observation that "bad money drives out good". So what is "good money"?. Good money is money that shows little to no difference between its commodity value, which is the value of the stuff the money is actually made from, and it's nominal value, which is what the currency suggests it is worth by it's face value. So in the case of our paper money what is the actual value of this piece of paper? Fractions of a penny. It is only because we all agree and trust the government that this piece of paper is worth anything. But it wasn't always that way. At the birth of the USA back in 1792 the US mint was established and minted coins that were made of silver. That continued with various concentrations of silver up until 1965 when all silver content was removed from nickels and dimes through passage of the coinage act. People eventually realized the actual value of the silver in US circulated coins (the commodity value) was worth more than it's nominal value. So people started to hoard any pre 1965 coins that were known to have silver content and today you almost never see these coins in circulation. If you do, hold on to them because they are worth many times more than their actual face value. Many people today who worry paper currency could become worthless buy bags of the old silver coinage which is called "junk silver" as an investment. In 2018 $500 face value of silver dimes cost $5,500 Today those same dimes cost over $16,000 and that is if you can find them as most places are completely sold out. This is a great example of Gresham's Law where $500 of silver dimes today cost over $16,000 and people are hoarding them. "bad money drives out good" So the question is if our own currency value continues to erode through inflation will we see people starting to hoard pennies for the copper value? Already happening. Canada actually stopped making pennies years ago likely for that very reason. And coin content has changed over time to keep ahead of Gresham's law. For example pennies in the US were made of 95% copper until 1982, 1983 pennies were 97% zinc and plated with a thin copper coating. This made sense because as the value of the copper went up, anyone could simply buy the pennies and hoard them or even melt them and make a profit because Gresham's law always drives good money underground. The USA actually loses millions making the penny as it costs almost two cents to produce, and that number is likely to increase as inflation continues. In fact even now you can purchase a machine from Ryedale enterprises that will automatically sort your pre 1982 copper pennies from the zinc ones in bulk. So you could technically go to the bank get $100.00 worth of pennies, double your money on the copper pennies as currently the copper value is about 2 cents. Roll up and return the non coppers and get another $100.00 and repeat. Obviously copper prices are too low now and the dollar is still strong enough that this would be too much work for too little money. But that situation could change. A great website to check the actual commodity value of the coins in your pocket is coinflation.com. They give the current metal value vs nominal value of all coins. So what can we learn from Gresham's law? Well one of the things is that Fiat currency eventually becomes worth just the paper it's printed on. Could we be headed to the same fate? #franchisecity

How much does a Taco Bell Franchise cost and how much can you make? #franchisecity

How Much Does a Subway Franchise Cost and What are the Earnings?