The Franchise Community Should Work to Ensure that Franchising Remains a Reputable Expansion Method

In nearly 12 years of developing new franchise systems, I have begun noticing an interesting, albeit, disturbing new trend that should bring cause for concern to franchise investors. An increasing percentage of clients interested in franchising their business are asking the question: “Do we have to call our franchise offering, a “franchise”?

When I first heard a client ask this very question two years ago, I chalked it up to the clients’ customers and potential franchisees; people that wouldn’t be caught dead in a chain store (Target and Whole Foods withstanding), never mind entertaining the thought of owning a franchise.

However, when I heard the same question again and again over the following months, I took notice and thought there must be more to the story. In spite of the many good reasons for franchising one’s business (local control, local motivation, access to expansion capital), when questioned further, these potential franchisors admit having unsettling concerns due to one or more of the following four general factors: