Both Sides of the Franchise Debate, Quick Lube Style
PC&D gives us an unexpected treat in their August journal on the continuing debate of whether to franchise or go independent. Although the essays both for and against are geared to quick lube franchises, some points apply to the general franchise industry.
In one corner, Jim Brown (photo), vice-president of Franchise and Community Relations for Mr. Lube of Canada, faces off in support of owning a quick lube franchise. His essay is here. The short of it is:
- Franchise systems provide a support system unparalled in independent operations
- Marketing in franchises is a better investment than independents because it incorporates a larger collective of franchise committee and customer inputs
In the opposing corner is the rich looking guy in the suit, the CEO and founder of Oil Changers, Inc., Larry Read (photo), who owns a 37-store independent chain located in San Francisco. His essay against franchising is here. To summarize:
- The best franchises "always wind up subsidizing the mediocre"
- As far as training, associations exist that train staff well
- Profit margins are sufficiently low that royalties really hurt the pocket of franchise owners
