Good Franchising doesn’t have to be complicated

I have been in regular contact over the last 3 years with a franchisor who prefers a low profile and to just do his thing. He looks at franchising this way;

Every dollar he gets into the advertising fund strengthens his [30year] brand and network profitability and keeps competitors scrambling for a distant second place.  Making sure franchisees can maximize a healthy return ensures that new franchisees come to the brand in numbers that allow him to be selective and he can then grow his network of suitable franchisees and continue to add more to the ad fund.  That's it!

It all happens on the back of successful franchisees ..... and it has very obviously produced a very large financial win for him.

He is not the only franchisor out there that operates from such a simplistic and yet logical philosophy. 

Is this a government shame that so many at all levels seemingly finds it necessary to accept that swine franchising is a necessary evil to grow the industry.  It seems the high numbers of those that become victims of disastrous franchise scams are classed as an acceptable level of collateral damage.  

Who works out what is ‘acceptable'?  Is there a secret universal government formula we don't know about?  Is dumb franchising another swine pandemic to foster the big boys?

Is it so much more profitable to operate a scam?  Do scams have a ‘used by date'?

What do you think about my friend's franchising-made-simple philosophy as opposed to the more complex approach? 

SMH: When the buck really stops with you

Cartoon courtesy of  Peter Nicholson