Thursday, May 15, 2008

Vested Interest and Buy-in Makes Franchising Work

It is hard to argue that those who have a vested interest or their own money and capital on the line make better workers, small business owners and franchisees. Indeed, the comment about a "Franchisee" having a vested interest is a real one and a major plus for franchising.

I am raid data recovery against the Franchising Model, I actually believe we ought to franchise the world Freakies that is to say the up and coming 3rd world nations, with a standardized government and add on regional variation modules. I am only against the bureaucracy and the excessive lawsuits that surround the franchising industry. It seems regulators and lawyers, too Specialty Gourmet Coffee stick their noses between the franchise-relationship.

Franchising is a win/win, but if you make all your decisions on fear of regulations or lawsuits then you cannot move fast enough to win. So, I concur with "ALL" the many reasons and hard drive recovery service for the Franchising Model and its man variations, I love franchising because it fundamentally makes sense.

If a franchisor cannot operate from a "tough love" standpoint to propel brand and success of the system then the franchisees get less not more. If the government regulators step in to tell the franchisor who he can and cannot sell too and how he must operate then there comes a diminishing point of the size of the golden carrot. Franchising is one way; it is not the only way.

Efficiency of the operators of the outlets due to 'buy-in' can be attained in business models other than franchising by way of profit sharing, benefits, stock options, etc. Humans and human motivation is not so difficult to figure out, Maslow is right. Franchising on the surface appears to be a win/win, but with all the forced regulations on an industry that has a fraud rate of under 1% is questionable.

If regulators have to create criminals to serve their on-going justification of regulations and if attorneys have to make money for their activities, one can easily see that although franchises enjoy the advantage of vested interest or buy-in, it may not be worth it. Think on that.

"Lance Winslow" - Online www.WorldThinkTank.net/Think Tank forum board. If you have Lava Lamps thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/www.WorldThinkTank.net/. Lance is a guest creator for www.ourspokanemagazine.com/Our Spokane Magazine in Spokane, Washington