Stewart’s Franchising Laws: Group power growth

July 30, 2009

ExponentialStewart’s Law (Group power) – the strength of a franchisee group will double every 3 months if not interfered with by a credence good provider.

This network effect-empowered capability is cheaper to deal with from within the group than by the franchisor directly.

Explanation: As franchisees gather together, their power grows exponentially not in a straight line way (ie. not added but MULTIPLIED and CUMULATIVE).

They gain progressively more confidence, build trust and move forward very much independent of the pettiness that revenge breeds.

Click on image (above) to see as you add a few members, their collective power increases by a much greater amount that they ever imagine. (This is what franchisors and their advisors know that franchisees fail to appreciate.)

Well before they realize their own, unleashed capability,  a lawyer usually has been assigned to confuse and derail their efforts.

Credence good providers are paid very, very well by the industry via referrals, new clients, hourly rates, promotion, and publication opportunities.

Franchisees should never start with a brand name attorney as their leader.

This is what differentiates an ordinary IndFA and what I have defined as an Attorneyless franchisee network, AFN: a AFN is franchisee-led  toward success, an IndFA is attorney-captured and almost 100% guaranteed for failure or impotence.


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