Is AM really selling chips at near cost? The formula AM uses for franchising seems really risky to the franchisee. Where would these divs come from at this point?
I don't put a lot of faith in this "AM selling chips at cost" rumor either.
The only source of it is a forum post from Spoondlies-tech (Guy Corem), who, in my opinion, doesn't conduct himself very professionally on this forum.
I don't know what the actual production costs are, and I doubt he does either.
I'd be surprised if production costs were high enough for AM to have to sell chips at a loss/break-even point this early in the game.
What's the formula for franchise arrangements? I keep hearing about it being risky for franchisees but I don't understand why.