A Crash Course In The Risks Of Global Expansion

When Miguel Angel Sanchez Valdez and a partner bought a Dryclean USA Inc. franchise in 1992, they borrowed almost half the $300,000 startup cost. Wary of sudden interest-rate surges in unpredictable Mexico, Sanchez hurried to pay the loan back in a year and a half. "Some months, we preferred to pay the bank rather than pay [franchise] royalties," he says.

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