Go ahead and choose your executioner: call a franchise expert

Rules of franchise groups:

1. A dead association is worth more than an alive one.

2. The owner of the logo pays someone else if they cannot execute themselves. The hooded one is either the charming outsider or the loud insider.

3. Franchise lawyering insists on a quick kill rather than a future, recurring cash flow/life cycle.

4. As an association executive, you’ll go along with the game or become a defendant.

5. A token truth added, infinitely strengthens the Big Lie.

6. 99.5% of visible U.S. independent franchisee associations are Potemkin villages (valuable to the status quo as franchisee false hope, example: FranchiseeAssociationManagement.com).

7. Leaders act as a doctor would because franchisees are in a type of daydream. Democracy is a noble concept but achievable only when debtors break their chains.

8. There is a narrow path but it requires patience, self-reliance, trust and one franchisee.

Call for a meeting.

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4 Responses to Go ahead and choose your executioner: call a franchise expert

  1. Franchisees who survive the first 5 years realize that there was no proven business model – making it hard for a profit association to take hold.

    Associations have to use their nature strengths in online marketing to reverse the strategic landscape.

    Like

  2. Les Stewart says:

    Michael,

    I agree with you: a traditional and actually independent franchisee is impossible. Initially.

    It is possible to develop a democratic structure over time.

    It’s about trust not traffic. Without ownership of the tradename, franchisees deliver themselves up to a legal slaughter.

    And rightfully so.

    Don’t use what you don’t own, kiddies, or it’s Good Friday time.

    Like

  3. In order to have a viable online marketing strategy, which leverages your system’s authority, the indfa needs to have its own trademark, branding strategy, and communication strategy.

    Like

  4. Les Stewart says:

    Michael,

    In an increasingly crowded mind space, it takes years and many millions $ to create, position and differentiate any significant new brand. Professional brand managers accept that 90% of their new brands will fail to live past a few years.

    That the average franchise group can do this part-time, while possible is unlikely in my experience. If they had the requisite skills, they would not be franchisees in most cases or would quickly abandon a marginal or predatory environment.

    I would never hold this solution out as a viable option.

    The existing economics still hold: a franchise group is more valuable dead than alive (ie. a qualified buyer with cash to spend to send an agent to scuttle the ship).

    Trading one credence good for another (not legal but online marketing consultancy) is not a rational choice, at least to me. The desire for short-cuts is what made the questionable biz op attractive originally.

    There are no free lunches: Never have been, never will be in the entrance, term and exit.

    A great idea experiment? Yes.

    A proven solution. No and maybe (after 10 years of independent verification). There is no secret recipe for re-building trust and confidence.

    The smart ones are always staying in the weeds.

    Like

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