Franchising And The Internet
from the two-things-that-might-not-go-well-together dept
Franchising used to be such a great concept. A big parent company builds up the brand, and provides training and some basic look-and-feel stuff, and then allows a local business person to take over to handle all the local stuff. That worked great pre-internet dot com craze. Now, franchises are running into all sorts of problems. The franchisers are looking at selling on the internet, which the franchisees claim is a violation of their franchise agreements. Meanwhile, the franchisees are also looking to sell via the internet, and the franchisers aren't too keen on that. Now companies are trying to figure out if there's a way to update the franchise concept for the internet age.
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Simple Answer
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1) If the sale is going to happen, better to get something rather than nothing
2) you don't have to deal with customer service, fufillment, or collection....and yet you get a check.
Many of the franchise operations make a killing taking product and processing it for the frachisees...they would make MORE of a killing selling it directly (assuming the personal local relationship is not worth anything)
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