If McDonald's issues a franchise, they collect lic

If McDonald's issues a franchise, they collect licensing fees up front AND they make sure you have the capabilities to fund the opening of the store. The contractual agreement is probably an inch thick of all the franchise guidlines you must follow. Back to the Ford example, even if I lease a $20, 000 car, I must come up with $3000 in signing fees, not to mention terms and conditions such as excess mileage. The mileage on a car will determine if a dealership can sell it as a trade in or put it to auction. Above a certain mileage (80, 000 or 120, 000) a bank won't lend on a vehicle.