In response to Brian’s blog I’d like to say that the franchises are a very broad market. However the franchise models differ, most of them are strictly controlled, the digree of flexibility for a franchisee depending on franchise contract. Therefore I do not fully agree with Bryan’s the statement that once you sell a right to run franchise “You no longer wholly own your business either because the franchisees are not employees, but partial owners in their own right.” You can still remain desired level of power if the right contract is signed.
I do not agree that franchise lowers the startup costs, as it is in itself a significan cost to a franchasee, however, it significantly lowers business risk, as the franchises’ business models have been tested before and have proved reliable. It is also relatively easier to run a franchise for somebody that has no previous experience in business as many of the functions are outsourced to the mother organization.
